(Year-end Feature) Xu Zhengyu, Director of the Hong Kong Finance and Treasury Bureau: Connecting with the Mainland to enhance Hong Kong's international competitiveness

　　China News Service, Hong Kong, December 23. Title: Xu Zhengyu, Director of the Hong Kong Treasury Bureau: Interconnection with the Mainland to enhance Hong Kong’s international competitiveness

　　China News Agency reporter Wang Jiacheng

　　"The closer we connect with the mainland, the better we can serve international investors and the international market; the more connected we are with the mainland market, the more attractive Hong Kong is to international investors and the international market." Hong Kong Financial Affairs and Treasury Bureau ( This is what Xu Zhengyu, director of the Bureau of Finance and Treasury, said in an exclusive interview with a reporter from China News Agency recently.

　　In Hong Kong, the Bureau of Finance and the Treasury bears important responsibilities such as maintaining a sound and stable financial system; cooperating with regulatory agencies and the industry to seek more development opportunities for the Hong Kong financial services industry.

As one of Hong Kong’s youngest senior bureaucratic officials in history, Xu Zhengyu, director of the Bureau of Finance and Treasury, has to deal with many problems such as the epidemic, de-globalization, and the resulting economic shock when he took office in April this year.

　　Xu Zhengyu said frankly that the epidemic has severely hit Hong Kong's tourism and retail industries.

In order to reduce the impact, the government has launched a number of measures, including providing direct support and support, injecting funds into the epidemic prevention and anti-epidemic fund for multiple rounds, and the resources invested accounted for about 11% of Hong Kong’s GDP. At the same time, countercyclical measures are used to invest in the future, such as engineering Investment and non-constant expenses, etc.

　　When asked whether he still has confidence in financial stability in the face of difficulties, he pointed out that, in fact, since the outbreak of the epidemic, it can be seen that funds have been flowing to Hong Kong.

Moreover, Hong Kong's overall banking system is still very stable, and relevant indicators are also at a relatively high level at the international level.

According to the latest data, the average liquidity coverage ratio of major banks in Hong Kong exceeds 156% and the average capital adequacy ratio exceeds 20%, both of which are higher than international regulatory standards.

"In terms of financial stability, we are very confident."

　　Financial stability is a good foundation for market development.

With the support of the central government and various ministries and commissions, the Finance and Treasury Bureau is also committed to promoting the expansion of "interconnection".

In terms of the stock market, Nanxiang will include biotech companies that have not made a profit in Hong Kong under the new listing system; Beixiang will include some stocks on the Mainland Innovation and Technology Board.

And cross-border financial management in the Greater Bay Area, which has attracted much attention, is also being actively promoted.

Xu Zhengyu revealed that the regulatory agencies in the Mainland, Hong Kong and Macau have announced the framework of the plan earlier. Currently, the regulatory agencies are in the process of docking, hoping to make the framework concrete; banks and other institutions also need to make business and system adjustments, hoping to announce to the market as soon as possible Relevant details of plan execution.

　　In fact, the interconnection plan between the Mainland and Hong Kong has been in development for 6 years since the end of 2014.

The results handed in are impressive.

Xu Zhengyu introduced that since the current government took office in 2017, the average daily trading volume of Northbound Shanghai-Shenzhen-Hong Kong Stock Connect has basically increased by about 9 times; the southbound trading volume, that is, the trading volume of Hong Kong stocks purchased through Southbound Stock Connect, is basically It also more than tripled.

　　In Xu Zhengyu's view, Hong Kong should make full use of the opportunities brought by the development of the Guangdong-Hong Kong-Macao Greater Bay Area. He described integrating into the overall national development and maintaining international advantages as the "two sides" of Hong Kong's development. The two are closely intertwined and complement each other. .

He pointed out that in this process, on the one hand, the country has become more and more open to the outside world and internationalized; on the other hand, more and more international investors hope to connect with the mainland through the Hong Kong platform.

Therefore, integrating into the overall situation of the country's development will not only cause Hong Kong to lose its existing advantages, but will also enhance Hong Kong's competitiveness and make Hong Kong a more popular destination for international funds.

"In fact, the more we connect with the mainland, it makes us more competitive and more credible in the eyes of international investors."

　　Xu Zhengyu continued, in his mind, Hong Kong is not only an international financial center, but also a comprehensive international financial center.

In addition to the stock market, it also includes a series of products such as bank insurance.

Therefore, after realizing the interconnection of stocks, he also hopes to realize the interconnection of the insurance market, so that Hong Kong insurance companies can set up after-sales service centers in the Mainland, so as to provide consultation, claims and settlement for Hong Kong, Macau and Mainland residents who hold Hong Kong insurance policies. Comprehensive support such as renewal.

At the same time, we strive to implement an equivalent pre-recognition policy for the insurance of Hong Kong vehicles entering Guangdong via the Hong Kong-Zhuhai-Macao Bridge, and extend the scope of liability for these cross-border vehicles to Hong Kong insurance companies to cover third-party liability insurance policies in the Mainland. It is equivalent to insuring compulsory insurance for motor vehicle accident liability in the Mainland.

　　Furthermore, Xu Zhengyu said that as an international financial center, Hong Kong not only serves financial services, but also needs to serve the real economy. It needs to find some new service points to serve the real economy well.

Especially in the face of complex international economic conditions, I believe that Hong Kong can give full play to its advantages in risk management, allowing investors and enterprises to better manage financial risks through relevant financial tools.

(Finish)