Hong Kong’s first five-year plan will seek to expand the use of the offshore yuan and deepen financial links with mainland China, Chief Executive John Lee has said.
Speaking at a Hong Kong Association of Banks luncheon on Friday, Mr Lee said the city would broaden its range of renminbi investment and risk-management products while strengthening its position as an international financial centre and offshore hub for China’s currency.
“We are committed to enriching the Renminbi liquidity pool, expanding offshore Renminbi investment and risk management products, and reinforcing our financial market infrastructure,” he said.
The plan will also propose expanding mutual market access through Stock Connect, Bond Connect, Wealth Management Connect and Swap Connect. The initiatives are intended to encourage greater cross-border investment, improve trade settlement in renminbi and widen the currency’s international use.
Mr Lee said Hong Kong’s strategy would be aligned with China’s 15th Five-Year Plan, which identifies renminbi internationalisation as a strategic priority. He described Hong Kong as the world’s largest offshore renminbi business hub and said its financial sector would be central to delivering the city’s economic ambitions.
Hong Kong’s first five-year plan to be unveiled on 16 September
The blueprint, covering economic and social development from 2026 to 2030, is due to be unveiled at a special Legislative Council meeting on 16 September, followed immediately by Mr Lee’s annual policy address.
Hong Kong’s government has said the plan will act as a long-term framework for the city’s development and will be closely integrated with national priorities. A public consultation launched in June also identified the Northern Metropolis, innovation and technology, finance, trade and infrastructure as key areas for consideration.
The Northern Metropolis, a major development zone along Hong Kong’s border with the mainland, is expected to combine university facilities, technology and industrial activity with residential and commercial districts.
Mr Lee said the government would also work with banks to develop renminbi-denominated products and support the financing of projects linked to the Northern Metropolis and the wider Guangdong-Hong Kong-Macao Greater Bay Area.
Hong Kong’s financial regulators are separately preparing for wider use of artificial intelligence in finance, with the Securities and Futures Commission focusing on the risks and opportunities created by the technology.
