HKMA welcomes proposal for trial personal renminbi business by Hong Kong banks

Press Releases

25 Jul 2003

HKMA welcomes proposal for trial personal renminbi business by Hong Kong banks

The Hong Kong Monetary Authority (HKMA) has welcomed the news announced today (Friday) by the Chief Executive, Mr Tung Chee-hwa, that the Central Government will actively consider allowing banks in Hong Kong to trial run personal renminbi business, including deposits, remittances, exchange and credit card business.

Mr Joseph Yam, Chief Executive of the HKMA, said that such an initiative would be of benefit both to Hong Kong's development as an international financial centre and to the growing economic integration between Hong Kong and the Mainland. "The HKMA has for some time been in discussion with its Mainland counterparts on the possibility of facilitating renminbi deposits in Hong Kong banks," Mr Yam said. "The fact that the Central Government is now giving active consideration to allowing trial runs in this area is very encouraging news," Mr Yam said.

Mr Yam added that, since the proposal was still at a very preliminary stage, the exact details of the trial runs would need to be worked out once the decision to proceed had been taken. "We look forward to working with the Mainland authorities and with the banks of Hong Kong on this project in due course," Mr Yam said.

Mr Yam said that the further agreement of the Central Government to give preference to Hong Kong when considering liberalisation in market access in respect of offshore renminbi business, which was also revealed by Mr Tung today, was also very good news for Hong Kong. "Obviously, this is a matter for consideration by the Central Government at a future date, when such liberalisation becomes a reality," Mr Yam said. "However, the agreement to give preference to Hong Kong is a very positive reinforcement of Hong Kong's status as an international financial centre," Mr Yam added.

For further enquiries, please contact:

Jasmin Fung, Manager (Press), at 2878 8246 or
Sylvia Yip, Manager (Press), at 2878 1687

Hong Kong Monetary Authority
25 July 2003

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Last revision date : 25 July 2003