Financial Services

Cross-boundary Services

96.    Hong Kong is the world's largest offshore RMB business hub, with the world's largest pool of RMB liquidity.  In 2015, RMB trade settlement conducted through Hong Kong banks totalled RMB 6.8 trillion, representing a nine per cent increase over 2014.  RMB lending business also continued to grow.  Outstanding loans amounted to RMB 300 billion at end-2015, representing an increase of 58 per cent as compared with 2014.

97.    With the wide use of RMB internationally, there will be growing demand for RMB trade settlement, RMB assets and related financial services which will drive various types of transactions in our offshore RMB market.  We shall continue to explore with the Mainland authorities ways to open up more channels for the two-way cross-boundary RMB fund flows, including the possibility of increasing the investment quota for us under the RMB Qualified Foreign Institutional Investors (RQFII) Scheme.

98.    The successful implementation of the Shanghai-Hong Kong Stock Connect and the Mutual Recognition of Funds Arrangement is a key milestone for the mutual capital market access between Hong Kong and the Mainland.  We have discussed with relevant authorities of the Central Government the launch of the Shenzhen-Hong Kong Stock Connect and the enhancement of the Shanghai-Hong Kong Stock Connect.  We are all set with preparatory work and, subject to the announcement of the Central Government, shall implement the programme as soon as possible.