Minister of the National Financial Regulatory Administration Li Yunze speaks special remarks during the opening session at the Asian Financial Forum in Hong Kong on Jan 24, 2024. (ANDY CHONG / CHINA DAILY)

The National Financial Regulatory Administration is continuing to strengthen regulatory cooperation with Hong Kong financial regulators, enabling the city to leverage its unique niches under “one country, two systems” and consolidate its status as an international finance center, NFRA Minister Li Yunze said on Wednesday.

Li was speaking at the Asian Financial Forum 2024, which is co-organized by the Hong Kong Special Administrative Region government and Hong Kong Trade Development Council.

The NFRA continues to promote a higher level of opening-up to Hong Kong and Macao under the framework of the Closer Economic Partnership Arrangement, he said.

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“We continue to optimize the cross-border wealth management connect pilot program, expand the scope of qualified investment products, support financial institutions to actively participate in Shanghai-Shenzhen-Hong Kong Stock Connect and Bond Connect, and study whether to launch policy measures regarding elevating the service level of the insurance industry in Guangdong-Hong Kong-Macao Greater Bay Area.”

We support cementing Hong Kong’s role as an offshore renminbi business center, by supporting mainland insurers to issue renminbi-denominated green and catastrophe bonds in the city.

Li Yunze, Minister, National Financial Regulatory Administration, China 

The Chinese mainland will further open the banking and insurance industry to Hong Kong and Macao industry players, and support the mainland branches of Hong Kong and Macao banks to enlarge their business scopes, added Li. 

“We will also proactively explore whether these mainland branches can commence bank card services, and whether the threshold for Hong Kong and Macao financial institutions to invest in mainland insurance companies can be lowered,” he said.

“We support cementing Hong Kong’s role as an offshore renminbi business center, by supporting mainland insurers to issue renminbi-denominated green and catastrophe bonds in the city.”

The minister added that the NFRA is backing mainland financial institutions to strengthen their business operations to serve the local market of Hong Kong, and facilitating financial services to serve Hong Kong economy.

In his opening remarks, Hong Kong Chief Executive John Lee Ka-chiu said: “Under the one country, two systems principle, Hong Kong can create opportunities for companies, and economies, in Asia and around the world. The principle, and the far-reaching opportunities it brings to us, has enabled Hong Kong’s financial sector to thrive despite the considerable challenges we face.

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“Hong Kong will be at the heart of the continuing eastward shift of economic prospects. We are the superconnector and super value-adder bringing East and West together for rewarding opportunities long down the 21st-century road of promise.” 

Hong Kong Chief Executive John Lee Ka-chiu delivers a speech during the opening session at the Asian Financial Forum in Hong Kong on Jan 24, 2024. (ANDY CHONG / CHINA DAILY)

The CE mentioned that the government is now planning a second tokenized green bond issuance to show its commitment to promoting green and sustainable finance and digital assets. Last year, the administration issued a one-year tokenized green bond worth of over $100 million.

Themed “Multilateral Cooperation for a Shared Tomorrow”, the AFF will focus on analyzing global economic dynamics, promoting collaboration among stakeholders, exploring sustainable economic development models, and identifying opportunities for multilateral cooperation.

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The forum has invited 3,000 finance and business elites from 40 countries and regions, with more than 70 delegations from the Chinese mainland and overseas countries. More than 130 high-profile business elites will speak at the forum, and 140 exhibitors will showcase their financial services products and services at the forum.

HKTDC and Hong Kong Venture Capital and Private Equity Association also co-organized a deal-making session at the forum by lining up over 200 investors and more than 400 projects.