Hong Kong Plays an Important Role as Testing Ground for China’s Financial Market Liberalisation

Cross-border financial integration between Hong Kong and mainland China has further strengthened in recent years following the launch of the Shanghai-Hong Kong Stock Connect and the cross-border fund scheme.

Prof. Kalok Chan, Dean of The Chinese University of Hong Kong Business School and Wei Lun Professor of Finance, mentions in an interview with Wen Wei Po that Hong Kong plays an important role as the gateway between China and the rest of the world and will remain a reliable and well-governed global financial centre for China in the near future.

Dean Chan says that China has been the world’s fastest-growing major economy over the past few decades, and Hong Kong’s financial services industry has served and supported mainland Chinese companies in terms of overseas market expansion, M&A and financing needs. He indicates that the issuance of renminbi dim sum bonds, as well as the boost of yuan deposits due to the lifting of daily exchange limit, has established Hong Kong’s position as the world’s primary offshore hub for renminbi. In addition, the launch of the Shanghai-Hong Kong Stock Connect and the mutual recognition of funds between the mainland and Hong Kong have contributed to the gradual internationalisation of the renminbi, which has further reinforced Hong Kong’s irreplaceable role in China’s capital market liberalisation process.

Prof. Chan goes on to say that the big direction of reforms and the gradual opening up of China’s capital market will remain unchanged, and it is likely that the progress will further accelerate in the future. As part of China, Hong Kong can alleviate Beijing’s concerns in terms of financial security by taking on the role of a testing ground for China’s financial market liberalisation… Read More (PDF)

The original article is available in Chinese only. Please click the image below for further reading.

Source: Wen Wei Po
Date published: 3 July, 2015

Photo: Edmond Siu