Dominant Gateway to China

The growth and gradual opening-up of China offer unmissable opportunities.  China is now the world's second largest economy and is expected to make up 20% of the world economy by 2030*. International investment in China is still low but rising.  Meanwhile, the "going out" of Chinese firms and Chinese investors' demand for overseas investment will bring new opportunities.

With its strengths as an international financial centre and its unique advantage of having close links with Mainland China, Hong Kong has been the dominant gateway to Mainland China and the global hub for offshore renminbi business.  It is the best place to capture China opportunities.  

* According to PwC estimates

Dominant Gateway to and from China

Hong Kong originates and intermediates two-thirds of China’s inward foreign direct investment (FDI) and outward direct investment (ODI) as well as most financial investments.

China's FDI & ODI
RQFII quotas approved
Unique Access Channels to and from China

New channels have been opened to enhance connectivity between Hong Kong and Mainland China.  Cases in point are Qualified Foreign Institutional Investor (QFII), Renminbi Qualified Foreign Institutional Investor (RQFII), Mutual Recognition of Funds, Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and Bond Connect.Unique Access Channels to and from China

Largest Offshore Renminbi Centre

Thanks to its deep pool of liquidity, efficient financial infrastructure and multitude of cross-border portfolio flow channels, Hong Kong is the largest and most important global offshore renminbi (RMB) business hub, offering a wide range of RMB financial services, including clearing and settlement, financing, asset management, risk management, etc.

The highly efficient and robust market infrastructure in Hong Kong, including the RMB Real Time Gross Settlement (RTGS) system, allows market participants from all over the world to handle RMB transactions with Mainland China and among offshore markets.

 

Deepest RMB Liquidity Pool

Hong Kong has the world’s deepest RMB liquidity pool outside Mainland China of over RMB600 billion, supporting the vibrant offshore RMB business.

Most Important Offshore RMB Clearing Hub

Over 70% of the world’s RMB payments settled through Hong Kong, according to SWIFT statistics. Our RMB RTGS system facilitates banks from all over the world to make RMB payments and plays a critical role in facilitating RMB cross-border payments.

Major RMB FX Centre

Hong Kong has the highest turnover of RMB FX and derivatives trading among offshore markets.*

Largest Offshore RMB Bond Market

Hong Kong is an important RMB financing centre, hosting the largest offshore RMB bond market with issuers ranging from the Chinese Ministry of Finance to financial institutions and corporates from different parts of the world.

Unparalleled Access to the Mainland Markets

Hong Kong enjoys unique access channels for cross-border portfolio investment flows to and from China, including Stock Connect, Bond Connect and the Mutual Recognition of Funds arrangement. These channels enable overseas investors to access the Mainland capital markets through connections established between the Mainland and Hong Kong markets.

Hong Kong also holds the largest quota for the RQFII, underscoring its important role as an intermediary to facilitate overseas investors’ participation in the Mainland financial markets.

*Triennial survey by the Bank for International Settlements published in 2016.

Other Topics about Hong Kong as an International Financial Centre
Last revision date : 02 December 2019