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The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) welcomes the promulgation by the People's Bank of China and the Ministry of Commerce today (October 14) of the administrative rules for conducting foreign direct investments in Renminbi.
The Chief Executive of the HKMA, Mr Norman Chan, said, "The offshore and onshore Renminbi markets are linked by three bridges, namely, cross-border trade, direct investments and portfolio investments. This is an important step in further expanding the bridge for the use of Renminbi for direct investments, following the promulgation of the administrative rules for the use of Renminbi by Mainland enterprises to conduct overseas direct investments in January this year."
He added, "The promulgation of the administrative rules regarding foreign direct investments in Renminbi will greatly expand the use of Renminbi funds in Hong Kong and promote the development of the Renminbi bond market and financing activities in Hong Kong, enabling the development of the Hong Kong offshore Renminbi business centre to reach a new level."
In the past year or so, the development of Hong Kong as the offshore Renminbi business centre has been deepened and advanced, playing a very important role in the increasing use of Renminbi in cross-border trade and investments and the currency's internationalisation, and at the same time supporting the development of offshore Renminbi businesses in different places around the world. In this regard, further to the roadshows conducted in Australia, Russia and the UK earlier this year, Mr Chan will be travelling to Spain next week to promote Hong Kong's offshore Renminbi clearing and business platform.
Ends/Friday, October 14, 2011
Issued at HKT 16:17
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