The Hong Kong Monetary Authority (HKMA), jointly with the Hong Kong Trade Development Council, organised a seminar on “Hong Kong: The Premier Global Hub for Offshore Renminbi Business” in New York on 11 June (Tuesday). The seminar attracted 230 representatives from corporates and financial institutions as well as other organisations in the US.
Mr Norman Chan, Chief Executive of the HKMA, said in his presentation, “Sino-US trade has grown at an average 17 percent per year over the past 10 years. China is now the third largest market for US exports. The rapid pace at which China’s imports are expanding presents enormous business opportunities to major exporters in the world, including the US. At the same time, growing investment links between China and the rest of the world suggests an increasing participation of Chinese businesses in the US, as well as a further strengthening of US investments in China. The growing trade and investment links between the two markets offer the opportunity to use renminbi (RMB) to enhance the efficiency of these activities.”
Mr Chan further commented that, “The internationalisation of RMB is taking place through the linking of the onshore and offshore markets via the trade settlement, direct investment, and portfolio investment channels. The use of RMB in trade and investment would strengthen business links with China by allowing US businesses to access suppliers, customers and business partners who may prefer to settle transactions in RMB. Moreover, the rapidly expanding offshore RMB market and greater access to the onshore RMB market would allow corporates and investors to tap into the financing and investment opportunities available in RMB.”
Regarding the role of Hong Kong in these developments, Mr Chan said, “The internationalisation of RMB is gaining momentum, and transactions with the Mainland of China previously conducted in other currencies are now increasingly conducted in RMB. The demand for offshore RMB financial services and products is set to increase in different parts of the world. In this context, the comprehensive, one-stop RMB business platform in Hong Kong could serve to support RMB business development in other parts of the world. Already, many US banks are participants in the RMB foreign exchange market in Hong Kong and we have also seen US corporates issuing RMB bonds in Hong Kong. There is certainly room for further participation by US businesses in the RMB market in Hong Kong to take advantage of the wider use of RMB in international transactions.”
The presentation was followed by a panel discussion joined by senior representatives from financial institutions and corporates. The seminar in New York was the eighth in a series of overseas roadshows conducted by the HKMA since early 2011. This was also part of the “Think Asia, Think Hong Kong” promotion programme organised by the Hong Kong Trade Development Council in the US.
Hong Kong Monetary Authority
13 June 2013
Mr Norman Chan, Chief Executive of the Hong Kong Monetary Authority speaks at the seminar "Hong Kong: The Premier Global Hub for Offshore Renminbi Business" in New York of the United States. The seminar attracts 230 representatives from corporates and financial institutions as well as from other organisations in the US.
Mr Norman Chan, Chief Executive of the Hong Kong Monetary Authority (middle) leads the panel discussion at the seminar. Panel members include Mr Gregory Weigard, Assistant Treasurer of Air Products and Chemicals; Mr He Guangbei, Vice Chairman and Chief Executive of Bank of China (Hong Kong); Ms Anita Fung, Group General Manager and Chief Executive Officer Hong Kong of HSBC, and Mr Paul Kennedy, Chief Financial Officer of Hong Kong Exchanges and Clearing Limited (from left to right).