Editorial | Shot in the arm for Hong Kong as key financial facilitator
People’s Bank of China governor Pan Gongsheng reiterates city’s superconnector role at Asian Financial Forum
If there were doubts about the importance mainland China places on Hong Kong’s position as an international financial hub for Asia, they need not linger any further.
Beijing is unveiling more measures to boost the city’s role as an offshore yuan financing centre, including a new funding facility and more access for mainland investors to foreign-currency bonds.
While details have yet to emerge, the pledges are a welcome development that will play to the city’s strengths.
The People’s Bank of China and the Hong Kong Monetary Authority are offering a 100 billion yuan (HK$106 billion) liquidity facility for banks to help customers secure yuan funding in periods of one to six months to support trade. Further enhancements to the cross-border Bond Connect scheme are also on the cards.
Central bank governor Pan Gongsheng told the Asian Financial Forum yesterday the city would see an enhanced role in the Greater Bay Area, and an increased allocation of China’s US$3.2 trillion foreign exchange reserves or US dollar assets primarily held in the form of US Treasuries and agency bonds.
“The prosperity and development of the capital market are at the core and foundation of Hong Kong’s status as an international financial centre,” Pan said, adding both sides would work together to expand financial interconnectivity, including encouraging high-quality enterprises to list and issue bonds in the city.
