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Following is the transcript (English portion) of a media session by the Chief Executive, Mr Tung Chee Hwa in Hong Kong this afternoon (November 18), about personal renminbi banking services at the Conference Hall, Central Government Offices New Annexe:

Reporter: How will these agreements benefit the banking sector in Hong Kong? Can you outline more what the measures are and how soon can they be implemented here?

Chief Executive: In answer to your questions specifically, there are four types of personal renminbi businesses. one is deposit-taking, one is exchange renminbi for Hong Kong dollar or US dollar, the other is remittances and that the last one is credit cards, renminbi credit cards. Here, the significance is that. Mainland tourists or businessmen coming to Hong Kong can use renminbi credit cards here for purchases. These will greatly help the convenience of those travelling. As to your last question, towards the end of this year or early next year, about on January 1, many of these arrangements will, step by step, be implemented.

Reporter: Which banks will be allowed to do the renminbi business? Have you estimated or can you describe what is the greater economic benefit for Hong Kong?

Chief Executive: All the licensed banks in Hong Kong will be able to participate in these businesses. As to how big the businesses will be, you know, as our economy and the Mainland economy become closer and closer, as people move back and forth more and more, especially as tourists start travelling, more and more tourists coming here and going to the Mainland, I think this business can be developed into a very large business. But more importantly, as I said earlier, this is a very important first step, a very meaningful first step for our banks to become involved in running the businesses. Also it is going to be a very important step to consolidate our position as an international financial centre.

(Please also refer to the Chinese portion of the transcript.)

Ends/Tuesday, November 18, 2003

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( Floor / Cantonese / Putonghua / English )