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Beijing unveils new policies to boost HK-mainland ties
By Hu Xiaocen |
June 27, 2012, Wednesday
|
Online Edition
Online Edition
BEIJING today announced a raft of new policies to strengthen financial cooperation between the mainland and Hong Kong in a push for yuan's internationalization.
A statement from the State Council, China's cabinet, says the central government encourages Shanghai, Shenzhen and Hong Kong stock exchanges to form joint ventures and list each other's exchange-traded funds.
Foreign investors are encouraged to use Chinese yuan in trade settlement and make investment in Hong Kong, a Xinhua report quoted the statement.
In April, China more than tripled the quota for RMB Qualified Foreign Institutional Investors to 70 billion yuan (US$11 billion), a program that allows the Hong Kong units of financial companies to invest offshore yuan in the mainland capital market.
Meanwhile, market watchers said yuan-denominated bonds sold in Hong Kong may double to 300 billion yuan this year from 2011. Hong Kong has been a vital off-shore yuan market and a testing ground for China's external financial policies.
Today's announcement came two days before President Hu Jingtao's three-day visit to Hong Kong to mark the 15th anniversary of the territory's return to China.
Other than financial cooperation, the new policies also cover trade, education, science and technology, tourism, and cooperation between Hong Kong and Guangdong Province, Xinhua said.
Hong Kong financial institutions will be allowed to set up consumer finance companies in Guangdong Province, especially in Shenzhen, the city bordering Hong Kong. Meanwhile, the Pearl River Delta will pilot a reform program to strengthen financial cooperation between Hong Kong and the delta cities.
A statement from the State Council, China's cabinet, says the central government encourages Shanghai, Shenzhen and Hong Kong stock exchanges to form joint ventures and list each other's exchange-traded funds.
Foreign investors are encouraged to use Chinese yuan in trade settlement and make investment in Hong Kong, a Xinhua report quoted the statement.
In April, China more than tripled the quota for RMB Qualified Foreign Institutional Investors to 70 billion yuan (US$11 billion), a program that allows the Hong Kong units of financial companies to invest offshore yuan in the mainland capital market.
Meanwhile, market watchers said yuan-denominated bonds sold in Hong Kong may double to 300 billion yuan this year from 2011. Hong Kong has been a vital off-shore yuan market and a testing ground for China's external financial policies.
Today's announcement came two days before President Hu Jingtao's three-day visit to Hong Kong to mark the 15th anniversary of the territory's return to China.
Other than financial cooperation, the new policies also cover trade, education, science and technology, tourism, and cooperation between Hong Kong and Guangdong Province, Xinhua said.
Hong Kong financial institutions will be allowed to set up consumer finance companies in Guangdong Province, especially in Shenzhen, the city bordering Hong Kong. Meanwhile, the Pearl River Delta will pilot a reform program to strengthen financial cooperation between Hong Kong and the delta cities.
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