Officials and experts have voiced support for Hong Kong's key location to increase use of the RMB for global trade settlement, cross-border investment and national reserves. (Photo by Xie Feng/For China Daily)
Position boosted
Capital market links between Hong Kong and the mainland started in 2014, with the gradual introduction of Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, Mutual Recognition of Funds, ETF Connect and Northbound Bond Connect.
These programs have boosted Hong Kong's position as an asset management center. Global investors can now access the mainland market to meet the needs of those seeking returns, while mainland investors can tap the vast pool of untapped mainland capital to invest in overseas assets.
Yue said: "About two-thirds of mainland stocks owned by international investors are held through the stock connect programs. On average, some 50 percent to 60 percent of international investors' turnover in onshore bonds is traded through Bond Connect."
According to the Global Public Investor 2021 Survey conducted by the Official Monetary and Financial Institutions Forum－a central banking and public investment think tank－renminbi assets have become increasingly popular. This is especially evident among global public investors such as central banks, sovereign funds and public pension funds, as the COVID-19 pandemic has boosted growth of the RMB as a reserve currency.
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