Govt looking at ways to expand renminbi usage: Hui

Christopher Hui, Secretary for Financial Services and the Treasury, stated on Friday that the government would explore new ways to utilize the renminbi in payment processes. This, he explained, was a natural progression to promote the national currency while simultaneously mitigating exchange rate risks. Chief Executive John Lee had previously announced in his Policy Address that the government aimed to promote the renminbi's usage and globalisation.

Hui mentioned that the government was already accepting renminbi through various channels, such as issuing yuan-denominated bonds. Additionally, authorities were working towards allowing residents to use renminbi for stock stamp duties and including RMB counters under the Southbound Stock Connect Scheme to encourage more renminbi transactions. This would help address issues related to exchange rates, as Hui noted.

The government plans to investigate scenarios like using renminbi to handle payments for water import projects or training sessions involving mainland institutions. Hui emphasized that the government aims to strike a balance between receivables and payables, which is a natural and logical process.

Furthermore, Hong Kong Exchanges and Clearing will reveal new renminbi-denominated, physically settled gold futures contracts this year as investors seek diverse products. The government will also expand financial services using the yuan, including for short-term financing needs, as stated in the Policy Address. The Hong Kong Monetary Authority will link the Faster Payment System (FPS) with UnionPay, enabling people to make purchases using renminbi.