This June 23, 2016 photo shows the Central Government Offices at Tamar, Hong Kong. (PHOTO / HKSAR GOVT)

HONG KONG – The Hong Kong government on Wednesday welcomed the announcement by the People's Bank of China on a series of measures to deepen the financial cooperation between the Chinese mainland and the special administrative region.

In a statement issued Wednesday night, the HKSAR government also expressed gratitude to the central government for its continuous support for Hong Kong's financial development. 

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The policy measures include promoting use of mainland bonds as eligible collaterals; allowing foreign investors to participate in the mainland bond repurchase business; and promulgating the implementation arrangements of the enhanced Cross-boundary Wealth Management Connect Scheme.

The HKSAR government will continue to actively consolidate and strengthen Hong Kong’s position as an international financial center, capitalizing on our strengths in financial services.

John Lee Ka-chiu, Chief Executive, HKSAR

The other measures are: introducing facilitative payment arrangements for Hong Kong and Macao residents purchasing properties in nine mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area; expanding the scope of Shenzhen-Hong Kong co-operation on cross-boundary credit referencing pilots; and further expanding the cross-boundary e-CNY pilots in Hong Kong.

Chief Executive John Lee Ka-chiu said the six new measures deepen the mutual access between the financial markets of the mainland and Hong Kong and will better serve international investors' need for liquidity management of investments in the mainland bond market.

“The new measures also meet the demands for cross-boundary financial services of the residents and businesses of the mainland and Hong Kong by providing innovative payment services for cross-boundary retail consumption by residents of the two places, facilitating Hong Kong residents purchasing properties in the mainland cities of the GBA, and providing more convenient services to businesses of the two places seeking cross-boundary financing,” he said.

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Paul Chan Mo-po, financial secretary of the HKSAR government, said the new measures enhanced the existing Bond Connect and Cross-boundary Wealth Management Connect mechanisms and enriched their content. 

“These measures can strengthen Hong Kong's unique role and function in connecting the mainland with the international markets and support the orderly opening up of the financial market of our country,” he added.

Saying that the new measures bring new opportunities for Hong Kong's financial sector, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu added: “The HKSAR government and financial regulators will continue to maintain close communication with the PBoC and relevant mainland authorities to implement the various policy measures on enhancing financial cooperation between the mainland and Hong Kong.”

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“They (the measures) will promote further opening up of the mainland’s financial market, strengthen Hong Kong's status as an international financial center and offshore RMB business hub, and foster closer connections within the GBA,” said Eddie Yue, chief executive of the Hong Kong Monetary Authority.

The HKMA will continue to work closely with relevant financial regulatory authorities and the industry to ensure timely and smooth implementation of these measures and explore further enhancements, he added.