Hong Kong to boost renminbi use through yuan bonds, government spending: Chris Hui

Hong Kong will increase renminbi usage by issuing more yuan bonds and settling some government expenditures, paving the way for mainland Chinese investors to use the currency to trade Hong Kong-listed stocks, according to a minister.

Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said on Thursday the move would address the question of how the city could use the yuan it received from various channels.

Hui was expanding on Chief Executive John Lee Ka-chiu’s policy address on Wednesday, which highlighted bolstering Hong Kong’s role as a renminbi hub.

The city is the world’s largest offshore yuan business hub.

Lee said Hong Kong would issue more yuan bonds and consider using the currency for government expenditures.

On Thursday, Hui said the new measures would pave the way for the inclusion of a yuan trading counter under the Stock Connect’s southbound trading scheme for Hong Kong stocks.

“Our exchanges with mainland China are deepening, and there are many opportunities or pilot programmes where we can use yuan for payment,” Hui said.