Speech by CE at Hong Kong FIC & & Bond Connect Summit (English just)(with photos/video)
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Following is the speech by the Chief Executive, Mr John Lee, at Hong Kong FIC & & Bond Connect Summit today (July 7):
Honourable Governor Pan Gongsheng (Governor of individuals’s Bank of China), Deputy Director Zhang Yong (Deputy Director of the Liaison Office of the Central People’s Government in the Hong Kong Special Administrative Region (HKSAR)), Mr Yu Wenjian (Chairman of the Shanghai Gold Exchange), Mr Kelvin Wong (Chairman of the Securities and Futures Commission), Mr Eddie Yue (Chief Executive of the Hong Kong Monetary Authority), Ms Bonnie Chan (Chief Executive Officer of Hong Kong Exchanges and Clearing Limited (HKEX)), differentiated visitors, girls and gentlemen,
Great early morning. It offers me fantastic satisfaction to join you today for the Hong Kong Fixed Income and Currency and Bond Connect Summit.
A hot welcome to Hong Kong. You are collected here to check out brand-new chances for development in our city, the Chinese Mainland and the world.
Hong Kong has actually long preserved an excellent position in global monetary services. In the most current Global Financial Centres Index, we ranked 3rd, internationally, and initially in Asia. We are the world’s biggest overseas Renminbi service center, and was just recently acknowledged as the world’s biggest cross-boundary wealth management centre.
The National 15th Five-Year Plan uses clear assistance for boosting our status as a global monetary centre, and developing a product trading environment in our city. Hong Kong is pushing ahead with preparing our own First Five-Year Plan. It will line up with the nationwide strategy and offer fresh chances in our contribution to the nationwide advancement.
Under the distinct “one country, two systems” concept, our enduring benefits– tactical place, competitive tax, typical law system and more– continue to guarantee we act as a multilevel bridge in between China, our nation and the rest of the world. It produces continuing chances for Hong Kong. And for the economies and business that work with Hong Kong.
Today, I am happy to show you 2 of those chances– both considerable market updates that display Hong Kong’s varied and vibrant monetary service offerings.
Enable me to start with our preferred colour: gold. I am thrilled to reveal that the main cleaning system for gold in Hong Kong formally starts its trial operation today. The Government-owned Hong Kong Precious Metals Central Clearing Limited will provide a detailed suite of services, varying from gold deposits and withdrawals, to deal settlements for the over the counter market in Hong Kong.
The preliminary gold deposits and the very first deal settlements have actually been finished. They include numerous banks, in addition to their customers, consisting of mining business, refiners, jewellers and other financiers.
This turning point might not have actually been attained without the assistance of our nation, and the important partnership in between the HKSAR Government, the Shanghai Gold Exchange, and the 11 banks resting on the board of the Central Clearing Limited.
In a world beleaguered with geopolitical crises and macroeconomic volatility, gold is turning into one of the essential pillars for liquidity and threat management. The launch of Hong Kong’s main cleaning system for gold will produce the strong structure, permitting us to take the next significant action– which’s developing a thorough gold trading environment in Hong Kong, one that benefits a world of financiers and institutional capital looking for safe-haven properties.
Under this brand-new cleaning system, we are presenting the preliminary stage of Delivery Connect in collaboration with the Shanghai Gold Exchange. It produces a structured system for individuals, enabling them to utilize gold holdings to settle deals in both the Hong Kong and Shanghai markets.
The effort will efficiently bridge the physical liquidity swimming pools of both markets. 3 banks are currently taking part in the effort, and the two-way transfer will be finished today.
The brand-new facilities is producing fresh chances in the market. Amongst them, HKEX has actually revitalised its United States Dollar gold futures agreement, which is drawing in broad market attention.
Hong Kong is likewise thinking about advancement of a brand-new Renminbi gold futures agreement, with shipment assistance from the Shanghai Gold Exchange. In cooperation with Bloomberg, a brand-new gold cost ticker, called HAU, has actually likewise been presented for gold traded and settled in Hong Kong.
HAU will guarantee that Hong Kong gold costs are totally available to international market individuals. It will likewise assist prepare for Hong Kong to contribute an international referral rate for the gold trading market.
The objective, obviously, is to develop an extremely advanced, institutional gold trading market in Hong Kong.
That consists of considerably enhancing our gold storage and refining centers in the coming years. The HKSAR Government is likewise thinking about providing tax rewards for qualified organizations carrying out gold trading and settlement in Hong Kong.
With our unified efforts, Hong Kong’s gold trading environment will turn into one that the world might count on. It will supply a golden chance for financiers, along with a vast array of expert services worried.
Due to the fact that, after all, if gold is the world’s safe house, then Hong Kong will be its safe harbour– with a cleaning system that makes every trade shipshape, and every trust bankable.
Let me turn now to my 2nd crucial upgrade– our flourishing bond market. Over the previous 2 months, Hong Kong has actually invited statements on the issuance of 6 billion Renminbi in sovereign green bonds, and a five-year bond futures agreement by the Central Government.
Later on today, Governor Pan and I will witness the finalizing of an MOU in between HKEX and the Cross-Border Interbank Payment System, the main channel for cross-boundary Renminbi payment and cleaning under individuals’s Bank of China.
The brand-new partnership will assist move the advancement of set earnings and currency in Hong Kong, reinforcing Hong Kong’s function as a premier offshore Renminbi centre.
Ladies and gentlemen, these appealing market advancements would not be possible without your commitment and assistance. For that, I am extremely grateful.
My thanks to the Securities and Futures Commission, the Hong Kong Monetary Authority, HKEX and Bond Connect Company Limited for arranging today’s Summit, and for your crucial functions, and continuing assistance, in promoting the advancement of the Hong Kong market.
I want you all a gratifying Summit and the very best of company in the 2nd half of this appealing year for financing– and Hong Kong.
Thank you.