Government and Policy

HK to diversify financial services in 2011

(Xinhua)
Updated: 2011-02-14 22:40
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HONG KONG - Hong Kong must diversify and strengthen financial services to enhance its status as China's global financial center, said Hong Kong Chief Executive Donald Tsang on Monday.

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Speaking at the spring reception at Government House, Tsang said Hong Kong will tap emerging markets on top of attracting more Chinese mainland businesses to list on the Hong Kong stock market.

He said that Hong Kong had regained most of the losses caused by the global financial crisis, and its growth momentum remains robust. The International Monetary Fund (IMF) has forecast strong growth of between 5 percent and 5.5 percent for Hong Kong in 2011.

"Local retail sales were buoyant during the Lunar New Year", said Tsang, some shops reported a 20 percent to 30 percent increase in the volume of their business this year compared to the same period last year.  

Despite all the positive data, Tsang said that Hong Kong needs to maintain agile and creative, to further diversify and strengthen its financial services.

"We will continue to expand Renminbi (RMB) business in Hong Kong and develop a broad range of RMB investment products to increase the attractiveness of RMB assets," said Tsang.

He said, Hong Kong will encourage firms from Hong Kong, Chinese mainland and overseas to issue RMB bonds in Hong Kong in the aim to build up Hong Kong as China's offshore RMB business center.

Tsang further added that combating inflation is currently Hong Kong government's most pressing task. "We will closely monitor the situation, and whenever necessary, we will not hesitate to take immediate action to tackle inflation."