Hong Kong’s stock market is accelerating efforts to introduce Chinese yuan pricing and settlement services, with 12 major companies, including high-tech giants Xiaomi and JD.com, applying to launch a yuan counter for trading.
By offering yuan pricing and settlement services, investors’ exposure to exchange rate fluctuations and other financial risks is expected to reduce. Additionally, the popularity and market value of these blue-chip stocks are expected to have a positive impact on other companies listed in Hong Kong.
The yuan counter is being explored under the Shanghai-Hong Kong Stock Connect, and its implementation is expected to enhance Hong Kong’s position as a world-class asset and wealth management centre amid potential financial risks caused by the US’ irresponsible monetary policy and Western banking woes.
Despite efforts by some doomsayers in the US and other Western countries to undermine Hong Kong’s financial centre status, the city’s economic and financial connections with mainland China remain a unique advantage for its financial industry.
Hong Kong is currently the world’s largest offshore yuan hub, with a deposit base of nearly 1 trillion yuan ($145 billion) as of the end of 2022, and about 75% of offshore yuan settlements are conducted in Hong Kong.
The accelerated development of yuan internationalisation will continue to strengthen Hong Kong’s role as a financial bridge between the Chinese mainland and global capital markets. With the solid support of the motherland, Hong Kong will continue to elevate its international competitiveness and advantages through the economic recovery of the mainland.
- Published By Team Hongkong Journalist