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The Financial Secretary, Mr Henry Tang, today (June 8) welcomed the announcement by the People's Bank of China of the Administrative Rules for Mainland financial institutions to issue renminbi bonds in Hong Kong.
Mr Tang said this was an important step towards the actual launch of renminbi bond business in Hong Kong. "This also marks the implementation of another specific recommendation in the Action Agenda on "China's 11th Five-Year Plan" after discussions at various levels between the Central Government and the SAR Government," he said.
He pointed out that the launch of the renminbi bond business in Hong Kong was an important break-through, as Hong Kong would become the first place outside the Mainland that had a renminbi bond market, and this would help strengthen its status as an international financial centre. This new initiative also provided banks in Hong Kong with new business opportunities, for instance, to participate in the issuance of renminbi bonds and in the trading of such bonds in the secondary market. Hong Kong residents will also have a new choice of renminbi asset for investment.
"Following the approval by the State Council of the renminbi bond business and the release of the Action Agenda on "China's 11th Five-Year Plan", the Hong Kong Monetary Authority and the People's Bank of China have been working closely on the preparations. To facilitate the issuance and trading of renminbi bonds, the development of the Renminbi Real-Time Gross Settlement System was completed on February 26 as scheduled. With the announcement of the Administrative Rules today, the preparation for issuance of renminbi bonds in Hong Kong has largely been completed," Mr Tang said.
"We understand that several Mainland financial institutions have already expressed interest in issuing renminbi bonds in Hong Kong and have begun their preparations for bond issuance. We expect the first issue of renminbi bonds can be launched before the end of June.
"We consider that it is a remarkable achievement to have accomplished such a task which is of big significance to our financial service industry on the occasion of the 10th anniversary of the HKSAR," he said.
Ends/Friday, June 8, 2007
Issued at HKT 19:50
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