HKMA supports Shanghai as onshore yuan hub
Norman Chan says mainland city would be top beneficiary of currency's full convertibility
Hong Kong Monetary Authority chief executive Norman Chan Tak-lam yesterday pledged to support Shanghai in building an onshore market for the yuan.
Chan said he and Shanghai vice-mayor Tu Guangshao discussed a plan under which Hong Kong would introduce more capital and investors to Shanghai to help create an onshore yuan hub.
"Co-operation between Shanghai, as an onshore market, and Hong Kong, an offshore centre, could be strengthened," Chan said.
"There is still big room for the tie-up to be consolidated."
Chan's remarks were aimed at allaying concerns about Shanghai's challenge to Hong Kong's role as the dominant yuan hub.
He said the establishment of an onshore centre in Shanghai when the yuan became fully convertible could benefit the mainland in quickening the pace of internationalisation of the local currency.
In January, Shanghai unexpectedly announced it would make the city a global centre for yuan trading by 2015, stoking fears in Hong Kong that the mainland's financial hub was readying to eat into its currency trade business.