Joseph Yam proposes leveraging HK's offshore yuan market to build China's financial power

Executive Council member and former HKMA chief Joseph Yam has suggested maximizing Hong Kong's role as an offshore yuan market to help China achieve its goal of becoming a financial powerhouse.

Yam made the remarks after attending the 2025 Financial Street Forum in Beijing, noting that China's recently approved 15th Five-Year Plan proposal includes accelerating financial system development.

He proposed that the nation further utilize Hong Kong's international financial center, particularly its offshore capital markets including the yuan offshore market, to advance yuan internationalization and use the city as a testing ground for enhancing capital account convertibility.

Yam described the current environment as facing "changes unseen in a century" with numerous unpredictable developments. He emphasized that central banks must strengthen all components of the financial system and prepare contingency plans to manage risks from geopolitical and financial technology changes.

The Five-Year Plan proposal specifically calls for expanding high-level opening up, including promoting yuan internationalization, improving capital account convertibility, and building a self-controlled cross-border yuan payment system.

Yam welcomed the proposal's reaffirmation of consolidating and enhancing Hong Kong's status as an international financial center, stating that national efforts to advance yuan internationalization present excellent opportunities for the city.