Xinhua News Agency, Hong Kong, September 22 (Reporter Li Binbin) Li Xiaojia, Chief Executive of the Hong Kong Stock Exchange, stated at the Hong Kong Stock Exchange's RMB Fixed Rate and Currency Forum on the 22nd that Hong Kong must make various preparations to protect and support RMB internationalization. You can't stand by and take advantage of the advantages of offshore RMB centers to brainstorm and take action.
Li Xiaojia said that the US dollar is currently the most important currency in the world, and other currencies are now difficult to replace the US dollar.
The Federal Reserve has adopted an unprecedented monetary easing policy under the new crown pneumonia epidemic. At present, the US dollar is very liquid in the market. This policy may bring about an economic crisis, but people are not panicked because there is no other choice.
Whether the global market needs to rely entirely on the US dollar system in the future depends on whether a strategic plan can be found.
He believes that the renminbi should play a more important role in the global fixed-rate and currency markets, and at the right time, the renminbi should be further internationalized and moved toward the center of the global market.
Hong Kong has made certain achievements in the exploration and development of fixed interest and currency markets.
According to statistics from the Hong Kong Stock Exchange, as of the end of June this year, the average daily turnover of Bond Connect reached RMB 19.9 billion, a new semi-annual high, three times that of the first half of 2019; more than 550 overseas institutions have entered the market through Bond Connect. The number reached 2012, covering 33 countries and regions around the world.
At the same time, Bond Connect has successively helped Chinese bonds be included in the Bloomberg Barclays Global Composite Index and JPMorgan Chase’s flagship global emerging market government bond index series, which has played a good role in promoting the opening up of the Chinese bond market.
Li Xiaojia introduced that the Hong Kong Stock Exchange has launched products such as RMB currency futures and Bond Connect, and has tried green bonds and financing, but the existing products are not enough. Hong Kong cannot rely solely on the previous products and establish other solutions, such as market Foreign trading platforms continue to test new products to expand new areas of RMB investment.
Data shows that as of the end of 2019, the scale of Hong Kong's offshore RMB fund pool was 658 billion yuan; the cumulative two-way transaction volume of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect has reached 27 trillion yuan; the cumulative transaction volume in the past three years since the opening of Bond Connect has exceeded 60,000 RMB 100 million has become an important channel for international investors to enter the Chinese bond market.