Propose four major suggestions to promote the internationalization of the Renminbi. Ren Zhigang: Hong Kong can also explore new opportunities to consolidate its position as an international financial center

During an interview with the Hong Kong Economic Journal and Now TV, Executive Council member and former President of the Hong Kong Monetary Authority, Norman Chan, proposed four new strategies to cultivate the renminbi as a strong currency. These include "Capital Connect," comprehensive dual-currency trading for Hong Kong stocks, establishing an automatic matching mechanism for "cross-currency trading," and setting up a "Renminbi Internationalization Fund" to issue bonds. He believes that by taking multiple approaches to promote the internationalization of the renminbi, Hong Kong can also explore new opportunities for itself and solidify its position as an international financial center amid changing circumstances.

He further stated that to help the country develop into a financial powerhouse, Hong Kong can still play many roles. He proposed a channel called "Capital Connect," which means integrating all interconnected channels into a single "Capital Connect" that allows for cross-channel fund utilization. Moreover, when investors sell stocks and cash out, the funds do not need to be returned to the mainland through the original route but can be directly converted in Hong Kong to purchase bonds or other products. Investors can also use already purchased assets, such as stocks, as collateral to invest in another type of product, describing this approach as becoming more flexible.

Norman Chan also suggested that the Hong Kong Stock Exchange (00388.HK) provide a "cross-currency trading" mechanism to offer real-time buying and selling prices for Hong Kong dollars and renminbi. If someone wants to buy stocks with renminbi, they can also see the real-time exchange rate.

In addition to the stock market, Norman Chan has previously proposed the establishment of a "Renminbi Internationalization Fund." He suggested that this fund issue renminbi bonds in Hong Kong, with the raised funds used to repurchase Hong Kong stocks in the secondary market, injecting liquidity into the stock market. This would keep renminbi in the Hong Kong market, avoiding a return to the mainland that could shrink the capital pool, while also activating both the bond and stock markets