Hong Kong Finances

HK checks on China’s Support Measures

Hong October 31, 2011 • 11:19 pm

Kong’s Financial Secretary John Tsang has concluded his trip to Beijing. As a result of the visit, he has confirmed that he had held solid discussions with relevant bodies in Mainland China to follow up on the policies and measures set out by Vice Premier Li Keqiang in August 2011. The measures are aimed at supporting Hong Kong’s development.

A large number of the measures are related to the financial sphere, which reflects the support of the Chinese government to strengthen the position of Hong Kong as an international financial centre, by expanding the cross-boundary use of the renminbi (RMB). According to Tsang, all Chinese bureaus and departments have been actively studying the Vice Premier’s policies, and they are expected to be implemented soon.

During Tsang’s meeting with China Securities Regulatory Commission Chairman, Shang Fulin, both parties discussed the progress in launching a Hong Kong exchange-traded fund (ETF) on the Mainland market. The Commission has entered the final stage of establishing ETF trading methods and management, so Tsang hopes that the details will be announced soon.

Tsang confirmed that China was finalizing the technical details of how to allow investments in the Mainland’s equity market by means of the RMB Qualified Foreign Institutional Investor scheme. He noted that he had received positive feedback from the State Council’s State-owned Assets Supervision & Administration Commission on the encouraging of state-owned enterprises to set up listed branches in the jurisdiction.

Also, Hong Kong will work closely with the Ministry of Commerce and the People’s Bank of China with a view to ensure smooth implementation of the managing of foreign direct investment from Hong Kong enterprises on the Mainland. To promote the initiative, officials from the Ministry and the Bank will be invited to Hong Kong.