New package of policies for HK to increase economic ties
By Hu Xiaocen |
01:20 UTC+8 June 28, 2012
|
Print Edition
Print Edition
CHINA will further promote the development of the offshore yuan market in Hong Kong as part of a new package of policies for city ahead of the 15th anniversary of its return to China.
The move comes ahead of President Hu Jintao's three-day visit to Hong Kong tomorrow to mark the anniversary.
The package covers increasing cooperation in overseas investment, education, tourism, science and technology between Chinese mainland and the city, as well as cooperation between Hong Kong and Guangdong Province, the central government said yesterday.
The Chinese government will encourage joint ventures between the Shanghai and Shenzhen stock exchanges and their Hong Kong counterpart, and allow the listing of exchange-traded funds in Hong Kong and the mainland.
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's capital markets.
Meanwhile, market watchers said yuan-denominated bonds sold in Hong Kong may double to 300 billion yuan this year from 2011. The city has been a vital offshore yuan market and testing ground for China's external financial policies.
"The yuan has become the world's third-biggest trading currency," ANZ China said in a weekly report yesterday. "In the first four months, the value of cross-border trade settlement in yuan jumped 17 percent in Hong Kong from the same period of last year to 748 billion yuan. Meanwhile, yuan-backed foreign direct investment topped 75.4 billion yuan in the first five months, which is as much as 25 percent of total inbound investment in the period."
Moving forward to promote yuan exposure in the offshore markets, China will also improve the development of offshore yuan products in Hong Kong to support trade and investment settlement in the currency, facilitating long-term investment from the city in the mainland's capital markets.
To further boost economic and trade cooperation, the central government will sign another appendix agreement to the Closer Economic Partnership Arrangement with Hong Kong, and push firms from the mainland and the city to invest abroad together.
The link between Hong Kong and neighboring Guangdong Province also got a boost.
Hong Kong colleges are encouraged to set up educational institutions in the province. Youth centers will be set up in Guangzhou and Shenzhen to expand exchanges between students from both sides. Hong Kong financial institutions are allowed to set up consumer finance companies in the province, especially in Shenzhen, while a pilot financial reform program will be implemented in the Pearl River Delta region to promote cooperation between the city and the province.
China UnionPay yesterday said its accumulated yuan-backed bankcard transaction value has totaled nearly 330 billion yuan in Hong Kong by the end of last month.
The move comes ahead of President Hu Jintao's three-day visit to Hong Kong tomorrow to mark the anniversary.
The package covers increasing cooperation in overseas investment, education, tourism, science and technology between Chinese mainland and the city, as well as cooperation between Hong Kong and Guangdong Province, the central government said yesterday.
The Chinese government will encourage joint ventures between the Shanghai and Shenzhen stock exchanges and their Hong Kong counterpart, and allow the listing of exchange-traded funds in Hong Kong and the mainland.
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's capital markets.
Meanwhile, market watchers said yuan-denominated bonds sold in Hong Kong may double to 300 billion yuan this year from 2011. The city has been a vital offshore yuan market and testing ground for China's external financial policies.
"The yuan has become the world's third-biggest trading currency," ANZ China said in a weekly report yesterday. "In the first four months, the value of cross-border trade settlement in yuan jumped 17 percent in Hong Kong from the same period of last year to 748 billion yuan. Meanwhile, yuan-backed foreign direct investment topped 75.4 billion yuan in the first five months, which is as much as 25 percent of total inbound investment in the period."
Moving forward to promote yuan exposure in the offshore markets, China will also improve the development of offshore yuan products in Hong Kong to support trade and investment settlement in the currency, facilitating long-term investment from the city in the mainland's capital markets.
To further boost economic and trade cooperation, the central government will sign another appendix agreement to the Closer Economic Partnership Arrangement with Hong Kong, and push firms from the mainland and the city to invest abroad together.
The link between Hong Kong and neighboring Guangdong Province also got a boost.
Hong Kong colleges are encouraged to set up educational institutions in the province. Youth centers will be set up in Guangzhou and Shenzhen to expand exchanges between students from both sides. Hong Kong financial institutions are allowed to set up consumer finance companies in the province, especially in Shenzhen, while a pilot financial reform program will be implemented in the Pearl River Delta region to promote cooperation between the city and the province.
China UnionPay yesterday said its accumulated yuan-backed bankcard transaction value has totaled nearly 330 billion yuan in Hong Kong by the end of last month.
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