HK and Shanghai FTZ is complementary
San Francisco, May 4 (People’s Daily Online) -- Professor K.C. Chan, Hong Kong secretary for Financial Services and the Treasury, said recently during his visit to San Francisco that Hong Kong and Shanghai free trade zone are complementary rather than competitive.
2014 marks the 10th anniversary of the launch of renminbi banking business in
In July 2009, it expanded from serving personal customers to enterprises and institutions, and transformed from one-way repatriation of RMB notes to two-way flows, which signified a crucial step forward to internationalization of the RMB. With the increasingly used, circulated, and accumulated of RMB in overseas market,
In February 2014, Chinese central bank promulgated regulations that allow companies based in the
Some experts said the move will be positive for H share performance as many mainland investors have been interested in investing in Hong Kong market but they were previously restricted. While some others saw a fierce competition between the two markets.
Professor Chan told People’s Daily Online during the visit to
“I have been to the Shanghai FTZ and seen some HK banks moving there,” he said. “I think it’s very successful.” Talking about the offshore RMB business, Chan said that it needs multiple and various services, including trading services, foreign exchanges, and other financial supports besides banking services. According to the data from the Hong Kong Economic & Trade Office in
At the end of 2013, total loans provided by authorized institutions to finance international trade and other loans for use outside
Chan told the reporter that the FTZ is an experiment by which the Chinese government tries to provide lower barriers of market entry and take away the disturbance for the companies.
When asked when RMB will be freely convertible, professor Chan joked that “it will be convertible as soon as I can expect”. He said, “It is a question we should take seriously. I think they are moving to the direction.”