HK accelerating inclusion of yuan counters in Southbound Connect: Chan

Hong Kong is accelerating the inclusion of the yuan counters in the Southbound Stock Connect program as part of its ongoing efforts to deepen financial connectivity with the mainland, said Financial Secretary Paul Chan Mo-po.

The move is to attract more yuan inflows into Hong Kong’s markets, Chan said at an event on Friday. The SAR government also supports lenders in providing yuan financing to enterprises, he said.

He stated that the authority is advancing the internationalization of the currency in three key areas. 

First, it aims to enhance offshore liquidity by continuing to issue yuan-denominated bonds of various tenors, Chan said. 

He highlighted the strong demand for the government’s recently issued yuan bonds, which were significantly oversubscribed, reflecting robust international appetite for yuan-denominated assets. 

Chan welcomed more sovereign entities, international organizations, and enterprises to issue bonds in Hong Kong to support their development projects.

Second, the government is optimizing the yuan's financial infrastructure, Chan noted, adding that improvements in clearing and custody systems and efforts to accelerate the integration of Hong Kong’s fast payment systems with China’s, facilitating smoother capital flows.

It is also enriching yuan investment and risk management products, the secretary said, adding that the government supports financial institutions in launching more diversified investment products and risk management tools to meet market demands.

STAFF REPORTER