Hong Kong to strengthen risk management role under five-year plan
Hong Kong remains the best place for mainland Chinese international companies to train captives and will continue to play a unique role in the country’s national development, according to Hong Kong’s financial secretary. Paul Chan Mo-po also said that the Special Administrative Region should be supported in creating more risk management products.
Speaking to journalists on behalf of the State China daily newspaper, Chan said Hong Kong has a vital role in the government’s 14th Five-Year Plan (2021-25) approved in March.
“We believe that the internationalization of the renminbi is a very important political priority of the central government. Hong Kong renminbi offshore center status needs to be further promoted, ”Chan said
The city’s total offshore renminbi capital accounts for about 60% of the country’s total, or about 800 billion yuan ($ 124 billion), he added, with Hong Kong handling over 70% of all settlements in the city. offshore renminbi.
“We need to offer more products in terms of investment and risk management, for example renminbi futures to manage currency risk. In terms of an offshore renminbi business center, there is a lot we can do, ”Chan noted.
In addition to developing the city’s asset management sector, the city is also “stepping up measures to cement the city as a risk management center,” according to the report.
Chan said, “When mainland businesses go global, Hong Kong is the best platform for them to establish their regional headquarters. In this particular location, with the free flow of capital, people, information and a highly sophisticated financial infrastructure, Hong Kong is the best place for businesses to manage their risks, purchase appropriate insurance, and train their insurance companies. captives to manage risk. of their worldwide activities ”,
China Daily, Risk Management, Insurance, Reinsurance, Paul Chan Mo-po, Hong Kong, China