Policy Address

Build a Vibrant Currency Market

95. Hong Kong is the world's largest offshore RMB business hub. To enhance the liquidity and global reach of the offshore RMB market in Hong Kong, the HKMA will make use of the Currency Swap Agreement with the People's Bank of China and introduce an RMB Business Facility, providing enterprises with the longer-term RMB financing required for trade, daily operation and capital expenditure, so as to support the use of RMB in the real economy. It will also continue to explore diversified channels for cross-boundary capital acquisition, so as to provide a stable source of RMB funds for the market at a relatively low cost. The HKMA will also explore measures to facilitate foreign exchange quotations and transactions between RMB and other regional currencies in Hong Kong.

96. The Government will issue more RMB bonds and consider settling government expenditure in RMB under suitable circumstances.