Hong Kong will actively explore expediting the issuance of mainland government bond futures in the city, as part of the measures to promote the internationalization of the yuan and greater openness of yuan capital accounts, Financial Secretary Paul Chan Mo-po said.
It will also explore with the mainland the inclusion of real estate investment trusts (REITs) under mutual access and the inclusion of a yuan trading counter under the Stock Connect, he said.
It will work with the industry on the formation of the offshore yuan yield curve, and look into specific measures to improve price discovery in the short-to-medium-term-interest-rate market, he added.
The city will also promote more convenient foreign exchange quotations and transactions between yuan and other regional currencies to reduce transaction costs, Chan said, adding that the SAR will attract high-quality issuers to increase yuan bond issuance in Hong Kong and tap into emerging markets to bring more cross‑boundary yuan transactions to the territory.
