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Paul Chan: The total quota for RMB business funding arrangements doubled to 200 billion yuan at the beginning of the month
Paul Chan, Financial Secretary of the Hong Kong Special Administrative Region Government, stated that in line with the proposal in the 14th Five-Year Plan to advance the internationalization of the renminbi, the total quota for renminbi business funding arrangements was doubled to 200 billion yuan at the beginning of the month. This will help financial institutions facilitate the broader use of the renminbi by enterprises and clients in trade and cross-border business. At the same time, the Hong Kong government will promote more convenient foreign exchange quotation and trading between the renminbi and other regional currencies to reduce transaction costs. Furthermore, the Hong Kong government will regularly issue RMB bonds with varying maturities to enrich the product offerings in the offshore RMB market and refine the offshore RMB bond yield curve. It will also work with the industry to actively develop the offshore RMB interest rate curve and explore specific measures to strengthen price discovery functions in the short- and medium-term interest rate markets. The Hong Kong government will also attract high-quality issuers to increase their issuance of RMB bonds in Hong Kong, tap into emerging markets, and encourage more cross-border RMB transactions to take place in Hong Kong. (Hong Kong Economic Times)
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