Developing and broadening the scope of yuan services in Hong Kong is crucial to the city's economic and financial growth, the financial secretary says.
'Our equity and bond markets and banking sector are all doing quite well. But what foundation should this three-legged pillar stand on? I believe it should be yuan business,' Henry Tang Ying-yen told a financial symposium at the Grand Hyatt in Wan Chai.
His comments yesterday came on the first day Hong Kong visitors to Guangdong were able to use cheques denominated in yuan to settle transactions in the province.
Mr Tang said in his budget speech two weeks ago that the government was in discussions with Beijing to allow cross-border trade to be settled in yuan and to set up a yuan debt issuance system in Hong Kong.
Secretary for Financial Services and the Treasury Frederick Ma Si-hang said he was optimistic about the future development of the bond market, which would offer investors greater product diversity.
He also said Hong Kong was on its way to becoming the main market for real estate investment trusts in the region in the next one to two years.
