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Business / Economy

China's HK, ASEAN should strengthen ties to expand offshore RMB business

(Xinhua) Updated: 2015-12-14 16:36

HONG KONG - China's Hong Kong should join hands with the ASEAN countries under the "One Belt, One Road" initiative to further expand the offshore renminbi business, Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region (HKSAR) government K C Chan said on Monday.

Addressing the 2nd ASEAN Development Forum hosted by the Asia Pacific Daily, Chan said with stronger economic and trade ties between China and other countries in the world, together with the inclusion of renminbi into the International Monetary Fund's Special Drawing Rights basket, renminbi will be more widely accepted and circulated in the international markets.

Chan said as a unique offshore market that is also part of China, Hong Kong will actively engage with overseas markets, including those from the ASEAN, in order to further promote the Renminbi infrastructure and financing platforms as well as enrich the provision of Renminbi services and investment products.

"Hong Kong could leverage on its historic foundation and strategic relationship with the ASEAN economies, with a view to achieving a higher level of integration and collaboration under the 'Belt and Road' direction," Chan said.

He said the "One Belt, One Road" initiative is a vision to help Asian economies integrate more closely, and due to the capital-intensive and long-tenor nature of infrastructure projects, Hong Kong will play an important role to help meet the huge financing need.

Chan said Hong Kong is firstly an ideal platform for enterprises along the "One Belt, One Road" to conduct fund-raising activities, as the region ranks the first in terms of equity funds raised through initial public offerings so far this year.

Second, bonds issuance is another viable and useful channel for enterprises to raise funds, Chan said, adding the markets for these renminbi-denominated bonds have been growing rapidly with remarkable progress in Hong Kong.

Besides, Hong Kong is also building its Islamic finance infrastructure as the "One Belt, One Road" initiative includes many Islamic countries and the potential for Islamic financial services is promising, Chan said.

He said with the successful issuance of two sukuks by the HKSAR government in the past two years, Hong Kong welcomes more sukuks to be marketed and listed here, leveraging on Hong Kong's financial platform to tap into investment opportunities available along the "One Belt, One Road".

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