Budget Proposal: Chan Mo-po: Actively expand the offshore RMB interest rate curve construction in collaboration with the industry to promote RMB internationalization

The Financial Secretary, Paul Chan, stated that in order to actively support the strategy for the internationalization of the Renminbi, the total quota for Renminbi business funding in Hong Kong has doubled to RMB 200 billion at the beginning of the month, which will help financial institutions facilitate the broader use of Renminbi by enterprises and clients in trade and cross-border business.

At the same time, the authorities will promote more convenient foreign exchange quoting and trading of the Renminbi with other regional currencies, and will regularly issue Renminbi bonds of different maturities. Together with the industry, they will actively expand the construction of the offshore Renminbi interest rate curve, study specific measures to enhance the price discovery function of the short- to medium-term interest rate market, and attract high-quality issuers to increase the issuance of Renminbi bonds in Hong Kong