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Following is the speech delivered by the Chief Executive, Mr Donald Tsang, at the Renminbi retail bonds launch ceremony of the Bank of East Asia (BEA)(China) Limited at Island Shangri-La Hotel today (June 29):
Dr David Li, ladies and gentlemen,
It is a great pleasure to join you this afternoon. Today marks a major milestone in the development of BEA China and the Renminbi market in Hong Kong.
When I was at the Boao Forum two months ago, Premier Wen Jiabao told me at the margin of the event that the Central Government would continue to reinforce Hong Kong's position as an international financial centre. He further added that various initiatives would be introduced to underpin that position, one of that initiatives was to allow Hong Kong banks on the Mainland to issue Renminbi bonds in Hong Kong. I am very delighted to see that this policy promise has come to fruition in such a short time.
The issue of Renminbi bonds by Hong Kong banks is strategically important to both the Mainland and Hong Kong. Since the introduction of Renminbi bond business in Hong Kong in June 2007, there have been seven bond issues by Mainland financial institutions. The Renminbi bond issue by Hong Kong banks is another key step for the further development of this business.
First, this breakthrough provides a useful reference for launching Renminbi-denominated investment products outside the Mainland. It also consolidates Hong Kong's roles as a testing ground for the Mainland's financial reforms as well as an international financial centre. More importantly, the measure diversifies Hong Kong's Renminbi business and strengthens our ability to handle Renminbi-denominated financial transactions.
During the recent global economic turbulence, the Mainland has demonstrated its capacity as a stabilising force in the region and beyond. Hong Kong benefits from this stability and is one of the very few jurisdictions to gain directly from its extraordinary access to the Mainland. Taking everything into account, I believe we are at a time of unprecedented opportunities. But let there be no doubt, unprecedented opportunities also come with unprecedented challenges. We count on all of you to partner with us to forge a successful and prosperous Renminbi market in Hong Kong.
Finally, I would like to offer my sincere congratulations to BEA China, which I am sure is filled with enthusiasm at taking this pioneering step of issuing Renminbi bonds for retail investors. Special congratulations go to Dr David Li, for his leadership and foresight. I would also like to thank the support of the Central Government and the Mainland authorities, including the People's Bank of China, for making this bond issue possible.
I wish the BEA China and the bond issue every success.
Thank you very much.
Ends/Monday, June 29, 2009
Issued at HKT 18:57
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