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FS speaks on RMB Bond Offering in Hong Kong (with video)
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    Following is the transcript of remarks by the Financial Secretary, Mr Henry Tang, after attending the Launch Ceremony of RMB Bond Offering in Hong Kong this afternoon (June 26):

Reporter: Can you tell us about your views towards issuance of RMB Bond in Hong Kong?

Financial Secretary: This is a very significant milestone because this is the first issuance of a renminbi-denominated bond (in Hong Kong). The issuance of this bond is a significant milestone as Hong Kong being the country¡¦s premier international financial centre. It is a further consolidation as well as development of the complementarity and co-operation between Hong Kong and the Mainland. The second significant step is, of course, renminbi is now the fourth currency to go on the Real Time Gross Settlement (RTGS) System, in addition to HK dollar, US dollar and Euro. These are all significant and important milestones for us.

Reporter: Do you think the bond will be well received by Hong Kong people?

Financial Secretary: It is an additional choice for investors in Hong Kong. I think the fact that it is now on our RTGS system will facilitate the trading or the liquidity of the renminbi bond, so although the total size of renminbi in Hong Kong is not very large ¡V currently it is only about $25 billion ¡V but I think that with further co-operation and integration between Hong Kong and the Mainland in terms of financial and monetary instruments, the pool can only grow.

Reporter: Will the bond be listed on Hong Kong Stock Exchange?

Financial Secretary: Currently their plan is not to list on the Hong Kong Stock Exchange yet because many of the brokers are not on the RTGS system. It will be traded on the OTC market. On the way forward, if more companies can go on the RTGS system on the approval of the Mainland authorities for renminbi transactions, then there would be better liquidity that it could be listed on the Hong Kong  Stock Exchange.

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


Ends/Tuesday, June 26, 2007
Issued at HKT 20:59

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