Pillar Industries

Boosting the Competitiveness of the Financial Sector

163.     Hong Kong is strategically positioned as China's global financial centre.  We will introduce measures to boost the competitiveness of our financial sector.

Offshore Renminbi Business

164.     To reinforce our offshore Renminbi (RMB) business platforms, we will promote the use and circulation of RMB funds, and establish strong and extensive links with the Mainland's onshore RMB market by three “bridges”, namely trade, direct investment and equity investment:

(i)         On trade, we will encourage our banks to develop worldwide RMB business networks to consolidate Hong Kong's position as a global trade settlement platform;
(ii)        On direct investment, with the introduction of measures for the administration of foreign direct investment in RMB, enterprises will have greater demand for RMB funds.  We will further develop our RMB fund raising services in the form of bank loans and the issue of bonds and shares; and
(iii)       On equity investment, the arrangements to facilitate investment in the Mainland's interbank bond market and investment by Qualified Foreign Institutional Investors will open up more investment channels for Hong Kong's RMB funds.  We will strive to extend these arrangements further.

In addition, we will encourage the diversification of our financial markets and products, and actively promote Hong Kong's role as an offshore RMB business centre internationally.

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