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The Ministry of Commerce promulgated today (October 14) the "Notice on Cross-border Renminbi Foreign Direct Investment". The People's Bank of China also promulgated today the "Renminbi Foreign Direct Investment Settlement Rules".
The Financial Secretary, Mr John C Tsang, said, "The Hong Kong Special Administrative Region Government welcomes the promulgation by the Ministry of Commerce and the People's Bank of China. It provides transparency and certainty for the related procedures in making foreign direct investments in Renminbi (RMB).กจ
Mr Tsang added that the relevant rules will lower the risk of currency exchange for Hong Kong enterprises in making investments in the Mainland as well as significantly increase the demand of Hong Kong and international enterprises for RMB financing. Enterprises can make use of the RMB fund-raising platform in Hong Kong by financing direct investments in the Mainland through banks, debt and equity. The implementation of the measure not only supports the development of the Mainland's real economy, but also provides more investment channels for the growing pool of RMB funds in Hong Kong. This would further promote the development of the RMB bond and securities markets, hence expediting the development of the offshore RMB business of Hong Kong.
Ends/Friday, October 14, 2011
Issued at HKT 13:09
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