China will double support to Hong Kong as an international financial hub for bonds and green finance, minister says at AFF

China’s financial authorities will double support for Hong Kong as China’s international financial center, opening the door to issuance and trading of more bonds and green financial products in Hong Kong, the banking regulator said.

Mainland branches of banks based in Hong Kong and Macau will be allowed a broader scope of business, including issuing cash cards, according to National Financial Regulatory Authority (NFRA) Minister Li Yunze.

He said financial companies in the two special administrative regions may also have lower eligibility criteria to invest in mainland insurance companies.

“Hong Kong has a liquid financial market, a large talent pool, [sound] The legal environment,” Li said at the Asian Financial Forum (AFF) conference hosted by the Trade and Development Council (HKTDC). “The central government supports Hong Kong’s development as a bridge between the mainland and the world.”

He said Chinese banks and insurance companies would be encouraged to issue renminbi-denominated bonds and other financial instruments related to green finance in Hong Kong.

“These issuances will further support Hong Kong’s bond market and role as an offshore RMB trading center,” he said.

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The proposal appears to have resonated with Egypt’s Finance Minister Mohamed Maait, who said the country is exploring opportunities to issue green bonds and other sustainable financial instruments in multiple currencies.

Financial Services and Treasury Secretary Christopher Hui said there is a good chance that Egypt, which will host the 2022 United Nations Climate Change Conference (COP27), will consider issuing dim sum bonds, which are renminbi-denominated bonds issued in Hong Kong. He said that there is. Hui hosted a panel discussion with financial officials from Thailand, Indonesia, Egypt and Croatia, and proposed the city as a potential source of funding.

The 17th AFF, with the theme “Multilateral Cooperation for a Shared Tomorrow”, attracted more than 3,000 participants over the two-day program.

“Hong Kong will be at the center of a continuing eastward shift in the economic outlook,” said the city’s chief executive, John Lee Ka-chiu, in a welcome speech to kick off the two-day event. “We are both a ‘super connector’ and a ‘super value adder’, connecting East and West for long-term valuable opportunities on this 21st century path of promise.”

Mr Li, a veteran banker who was named NFRA’s first managing minister last year, said China would continue to open up its economy and financial system to global investors. The new agency is an expanded version of the China Banking and Insurance Regulatory Commission, China’s banking and insurance company regulator.

He said China’s various cross-border investment channels, the so-called Connect Plan, will continue to be strengthened and expanded to allow more funds to flow into mainland bonds, stocks and derivatives from abroad via Hong Kong. Stated. Similarly, mainland capital will be allowed to flow into international affairs via Hong Kong.

“The open door policy is a long-term national policy for China and is the driving force behind the country’s financial market,” Li said. “We will support more foreign companies to invest in China and provide them with a favorable business environment with investor protection. The doors of the financial sector will continue to widen.”