(Nov 3): China Vice Premier He Lifeng said China will continue to support a free and open economic environment in Hong Kong and boost offshore yuan liquidity in the financial hub.

He said in a video speech to the Global Financial Leaders’ Investment Summit in Hong Kong that building the city “remains a key strategy for China”, pledging full support for its long-term development and stability.

He also vowed to scale up yuan bond issuance in Hong Kong and support listings there. He said mainland financial institutions’ ability to withstand risks keeps improving, and that China’s economic momentum is shifting to new drivers.

The pledges come as Hong Kong works to reinforce its position as a global financial centre, with Beijing’s backing seen as central to attracting international capital and deepening the city’s offshore yuan market.

Li Hongyan, the deputy administrator of the State Administration of Foreign Exchange, pledged to consolidate the city’s financial development, cement its international financial centre status and its role as an offshore yuan hub. 

Chinese regulators also said they would continue to expand cross border links between the mainland and the city.  

Li Chao, a vice-chairman of the China Securities Regulatory Commission, said this will include a yuan stock trading counter into the stock trading link while China will continue to open up as well as strengthen cross-border regulatory cooperation. 

At the same time, Li said they will crack down on fraud in cross-border capital and illegal business operations.

Uploaded by Tham Yek Lee