Hong Kong hopes to begin active Renminbi bonds business immediately upon completion of the Hong Kong Renminbi Real Time Gross Settlement (RTGS) system, the Hong Kong Monetary Authority (HKMA) stated in a press release Tuesday.

 

Hong Kong's monetary chief Joseph Yam said "HKMA will complete the work of establishing the Renminbi RTGS system and the related infrastructure as soon as possible to allow the new business to be launched quickly," according to the press release.

 

Yam explained that an important part of financial cooperation between Hong Kong and the mainland is the exploration in how to progressively link the financial markets of the two places, which will increase the scope, efficiency and liquidity of both markets.

 

Hong Kong's Financial Secretary Henry Tang and Joseph Yam met with Zhou Xiaochuan, Governor of the People's Bank of China, in Beijing on Tuesday discussing the issuance of Renminbi bonds in Hong Kong.

 

Their common position is that the sale and distribution of the Renminbi bonds, trading, settlement and custody and pricing in Hong Kong will be in line with habitual Hong Kong market practices, said the press release.

 

(Xinhua News Agency January 17, 2007)