China to expand global access to yuan assets and boost Hong Kong hub
Senior financial officials aim to strengthen the offshore yuan market and improve the environment for domestic companies seeking Hong Kong listings.
China plans to increase global investor access to yuan-denominated assets and reinforce Hong Kong's status as an international currency hub, according to The Economic Times on Tuesday.
People's Bank of China Deputy Governor Zou Lan said the country would use currency swap arrangements more extensively to provide multi-layered liquidity support to offshore markets. He stated these measures would facilitate the international use of the currency.
Zou added that China would maintain high-level financial opening-up while letting market forces determine exchange-rate formation. He said these steps would aim to stabilise investment expectations and reduce uncertainty in cross-border trade.
Li Chao, vice chairman of the China Securities Regulatory Commission, said China would deepen cross-border regulatory cooperation. He noted that an institutional environment would be established to help domestic companies list in Hong Kong.
Li also said regulators would work to combat illegal cross-border capital activities and financial fraud to support Hong Kong's role as a financial centre. Meanwhile, National Financial Regulatory Administration vice head Xiao Yuanqi warned that heavy investment in artificial intelligence could create economic risks.
Xiao said the concentration of capital in AI firms has increased leverage in the sector and could crowd out traditional industries by raising borrowing costs. He called for policymakers to create frameworks to manage the financial risks of the AI-driven transformation.
