Hong Kong to play bigger role as a renminbi business hub, says Finance Secretary

Financial Secretary Paul Chan Mo-poChan Mo-po said on Tuesday at the Hong Kong Institute of Bankers Annual Banking Conference that PHOTO HKSAR Hong Kong will be a unique financial center because it plays an indispensable role in connecting the Chinese mainland with the rest of the world.

In the latest Global Financial Centres Index released last week, Hong Kong fell to fourth this year, behind New York City, London and Singapore.

READ MORE: HK ranked fourth among global financial centers.

Chan said the government will promote reform and innovation to achieve better development of Hong Kong's financial markets.

Hong Kong will play a bigger role as an offshore renminbi business hub with the internationalization of the renminbi, Chan said, adding that the government will launch more RMB-denominated investment and risk-management products.

The finance chief said Hong Kong's banking and financial systems can remain stable, but he also acknowledged that the city's economy is facing contraction risks this year as the US Federal Reserve hikes have sapped trade and consumption.

However, Chan believes that professionals will return to Hong Kong as the city is lifting anti-pandemic measures and is expected to reconnect with the world.

ALSO READ: Experts praise HK's role as a global financial hub.

On Monday, Hong Kong scrapped its COVID 19 hotel quarantine policy, replacing it with the 0 3 arrangement. Those who come in from overseas and Taiwan will only need three days of self-monitoring from their home or hotel.