Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury of HKSAR government, gives an interview at the Central Government Office on June 29, 2023. (CALVIN NG / CHINA DAILY)

Since taking office in July 2022, the sixth-term Hong Kong Special Administrative Region government has made a sustained effort to improve the city’s financial competitiveness and is expected to introduce more measures to develop offshore renminbi and virtual asset businesses in order to attract global investors, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said on Thursday.

Citing the official launch of the Hong Kong Dollar-Renminbi Dual Counter Model on June 19, Hui described Hong Kong as “a builder of an offshore renminbi ecosystem”. 

The HKSAR government has issued close to $22 billion in green bonds since May 2019, and the value of green bonds issued in Hong Kong over that period has increased by about 40 percent compared to a year ago, according to the treasury chief

The financial hub will follow a three-pronged approach to continue to promote the development of offshore renminbi businesses, which includes enriching its financial products, increasing asset liquidity, and improving infrastructure, Hui said. 

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Regarding the enrichment of an offering of financial products, Hui added that Hong Kong will roll out more RMB-denominated products to meet the demand from investors, and the dual counter model is one of them.

He noted that since its launch, the dual counter model has worked smoothly at multiple levels, including trading and settlement.

To give full play to Hong Kong’s unique role in the process of renminbi internationalization, the HKSAR government will enhance market awareness of renminbi products, especially the dual counter model, said Hui, adding that this might entail the Financial Services and the Treasury Bureau working together with a number of institutions to promote investor education.

“The strong stock connect between Hong Kong and the Chinese mainland represents one of the incentives for global corporations to set up their family offices in Hong Kong,” said Hui. He met with asset owners from all over the world after the Wealth for Good in Hong Kong Summit held in March to showcase the advantages enjoyed by the city in developing family office business.

In addition to its strengths as a financial hub, Hong Kong boasts a sound philanthropy industry, art investment market and green finance, making it unique in luring global family offices, as “new generations of asset owners are not only concerned about financial returns, but also about what they can give back to the society”.

The HKSAR government has issued close to $22 billion in green bonds since May 2019, and the value of green bonds issued in Hong Kong over that period has increased by about 40 percent compared to a year ago, according to the treasury chief.

In addition to the 100 percent tax exemption bill for eligible family offices that was passed in May, Hui said the government plans to provide art storage services at Hong Kong airport to meet the demand of family offices for art investments, and will establish the Hong Kong Academy for Wealth Legacy by the end of the year to close exchanges among family office heirs.

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Meanwhile, the new regulatory regime for virtual asset trading platforms, which came into effect on June 1, is part of the sixth-term SAR government’s efforts to explore new development arenas.

“Hong Kong is a well-established international financial center in terms of regulation, rule of law and the way the market works, making it trustworthy for global players in various sectors, including virtual asset businesses,” said Hui.

The treasury chief holds a positive attitude about Hong Kong’s advantages in developing virtual asset businesses, saying that about 10 percent of technology enterprises in the city are involved in businesses involving virtual assets, which offers Hong Kong a sound virtual asset ecosystem that sets it apart from other international financial hubs.

Contact the writer at irisli@chinadailyhk.com