Hong Kong Yuan Asset Management Platform to Boost Internationalisation

Hong Kong yuan asset management platform will be launched to promote RMB internationalisation and strengthen global financial links, Chief Executive John Lee said in his policy address. The Hong Kong Monetary Authority and HKEX will study cross-collateralisation of shares and bonds on a single platform, with future links to markets such as Switzerland and the UAE. Offshore yuan use will be encouraged by allowing Chinese government bonds to serve as collateral and by developing new bond, repo and derivatives markets. The Securities and Futures Commission is also exploring an electronic bond-trading platform, while discussions continue on offshore treasury bond futures and cross-boundary yuan repo activity.