Yu Weiwen, President of the Hong Kong Monetary Administration: Deepen the interconnection with the Mainland brings new opportunities to bring new opportunities

Xinhua News Agency, Hong Kong, July 14th (Reporter Zheng Xin) Yu Weiwen, president of the Hong Kong Financial Administration, said in an exclusive interview with Xinhua News Agency that the financial market interconnection mechanism has deepened the connection between Hong Kong's cross -border financial investment field and the Mainland. The HKMA will continuously optimize and enhance the existing interconnection mechanism function, explore new opportunities, and strengthen Hong Kong as the role of global offshore RMB business hub, international asset management center and risk management center, help the mainland financial reform and opening up and the internationalization of RMB internationalization Essence

Yu Weiwen said that in recent years, the continuous expansion and deepening of the interconnection mechanism in the Mainland and Hong Kong has gradually become the main channel for international investors to allocate mainland assets. The interconnection mechanism provides international investors with convenient and efficient investment channels, and has complementary advantages with qualified foreign institutional investors (QFII), which greatly enhances the participation of foreign investment in the mainland stocks and bond markets. The global index has a mutually beneficial role in the development of the Mainland and Hong Kong's financial development.

In his opinion, the fifth anniversary of the "bond" is a microcosm of the Hong Kong bridge character in the opening of the national financial market.

"Hong Kong is different from other international financial centers. Its core competitiveness lies in 'back to the country and integrates the world'. This unique advantage allows 'bond pass' to play an important bridge role in the opening of the national bond market." Through the connection of financial infrastructure in Hong Kong and the Mainland, international investors can use international market practices in a familiar regulatory environment, and facilitate mainland bonds through long -term cooperative financial intermediary agencies.

The bond "north to the north" has been popular in the market for five years. The total turnover has risen from 31 billion yuan in the first month to 675 billion yuan in May this year. As of the end of May, the total scale of foreign investment in mainland bonds was approximately 3.7 trillion yuan, an increase of 2.81 trillion yuan from the "north direction".

Yu Weiwen said that more than two -thirds of the A -shares held by international investors are investing through "stocks", and more than half of the buying and selling mainland bonds onshore bonds through the "Bond Connect". Influence among the people.

He believes that there is still much room for development of bonds. As the scale of international investors holding mainland bond assets has continued to rise, the demand for risk management tools is becoming increasingly enthusiastic, one of the main tasks of the "bond pass" in the future should be to provide diversified risks for "Northbound" investors. Management tools, on the one hand, enrich the product facilities of the bond market, and help improve the function of the Hong Kong Risk Management Center.

On July 4, the People's Bank of China, the Hong Kong Securities and Futures Affairs Supervision Committee, and the Hong Kong HKMA issued a joint announcement to conduct the interconnection and cooperation of the Hong Kong and the Mainland interest rate exchange market ("swap") to further promote the internationalization of the RMB and consolidate Hong Kong International Financial Center status.

Yu Weiwen said that the launch of "interchange" is very timely, allowing international investors to manage interest rate risks related to bond investment more conveniently. It continues the design of the "bond", and through the connection between the Mainland and the Hong Kong infrastructure institutions, facilitate foreign investors to carry out inter -bank interest rate swap business without changing existing operating habits.

He said that the "swap" will bring new development opportunities for Hong Kong's financial markets in various aspects such as product development and supporting services, and promote the healthy and sustainable development of the Mainland and the Hong Kong bond market.

Yu Weiwen believes that with the continuous expansion of RMB cross -border circulation and the scale of use, the international status has steadily increased, and international investors' demand for offshore RMB products will continue to increase. Hong Kong will seize opportunities and develop offshore RMB ecosystems.

"For example, in terms of fixed income products, after the Shenzhen Municipal Government successfully issued debts in Hong Kong last year, we will promote more domestic and foreign issuers to use Hong Kong's financing platforms and professional services to further enrich the financial products of the offshore RMB market and help Hong Kong The bond market and the development of green and sustainable finance, "he said.

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