Nation backs HK as global financial hub

China will introduce additional measures as needed to support the Hong Kong Special Administrative Region's development as an international financial center, and will continue to help the city foster a freer and more open economic environment, Vice-Premier He Lifeng said on Tuesday.

Senior financial regulators have outlined plans to strengthen the HKSAR's offshore renminbi business, expand capital-market links with the Chinese mainland and facilitate cross-border investment and financing.

In a video address to the fifth edition of the Global Financial Leaders' Investment Summit, organized by the Hong Kong Monetary Authority, the vice-premier said that the country's financial authorities have introduced a series of measures this year to reinforce Hong Kong's role as an international financial center. These include supporting mainland companies seeking listings in Hong Kong, deepening mutual access between the two markets and strengthening offshore renminbi liquidity.

"We will continue to guide relevant departments in implementing these policies effectively and introduce additional measures in a timely manner as needed to inject further momentum and vitality into Hong Kong's financial development," he said.

The vice-premier also urged Hong Kong to fully leverage the advantages of the "one country, two systems" to build a higher-standard, free and open economic environment.

He called on the city to strengthen economic, technological and cultural ties with the rest of the world, making it easier and creating more opportunities for international investors, institutions and talent to establish and grow businesses in Hong Kong.

"The central government will continue to give its full support to Hong Kong in preserving its unique status and advantages over the long term," he added.

Zou Lan, deputy governor of the People's Bank of China, the country's central bank, said that as the world's largest offshore renminbi business center, Hong Kong will gain significant opportunities from the opening-up of mainland financial markets and the currency's growing international use, particularly amid international investors' growing demand to diversify their investments.

"We will consolidate Hong Kong's position as an offshore renminbi business hub and support the development of a deeper pool of renminbi assets in the city," Zou said.

As part of efforts to strengthen capital-market cooperation, Li Chao, vice-chairman of the China Securities Regulatory Commission, said that the regulator will further facilitate cross-border investment and financing, and accelerate work to include renminbi trading counters and Real Estate Investment Trusts in the Stock Connect programs, which are cross-boundary investment and trading channels that link the stock exchanges of the mainland with the Hong Kong Stock Exchange. The commission will also support mainland companies seeking listings in Hong Kong as they expand internationally, Li said.

Li Hongyan, deputy head of the State Administration of Foreign Exchange, said that China's foreign exchange regulator recently released two draft policy packages for public consultation — one aimed at better meeting the diverse settlement needs of foreign trade companies and the other at easing cross-border investment and financing.

The proposed measures will help companies participate more effectively in international trade and economic cooperation, while giving fresh impetus to the HKSAR's development as an international financial center, she said.

The three-day summit in Hong Kong brought together about 280 global financial leaders, including around 120 group chairpersons and chief executive officers, with speakers drawn from leading investment banks, asset managers and public investment funds.