Mutual benefits: Monetary Authority Chief Executive Joseph Yam says there is a need to expand Hong Kong financial institutions' presence on the Mainland.

Monetary Authority Chief Executive Joseph Yam says Hong Kong can make a greater contribution to the Mainland's financial reform and liberalisation, adding there is a need to expand Hong Kong financial institutions' presence on the Mainland.

Speaking at the Hong Kong Economic & Trade Office Seminar in Tokyo today, Mr Yam said it is unique for China to have two financial systems with pronounced differences, and there is increasing recognition of the need for strengthening the cooperative relationship between the two. 

He outlined a strategy for Hong Kong to contribute more to the Mainland's reform and liberalisation and maintain the city's status as an international financial centre.

Strategy details

The strategy includes five key elements:

* to facilitate the expanded presence of Hong Kong financial institutions on the Mainland;

* to work with the Mainland authorities to increase the outward mobility of Mainland investors and fund raisers, and the associated funds, and of financial institutions and instruments;

* to develop channels whereby Hong Kong financial instruments, including H-shares Mainland enterprises issue in Hong Kong, are made available to investors on the Mainland;

* to strengthen Hong Kong's ability to handle financial transactions denominated in the renminbi in anticipation of the rising role of the renminbi as an international currency; and

* to strengthen links between the financial infrastructures of the Mainland and Hong Kong.

Mr Yam said the specific proposals falling within the five key elements of the strategy will benefit China as a whole.

"The two financial systems in co-operation will serve sustainable and rapid economic growth of China well, in turn benefiting our neighbours in the region and the global economy from a regional and a global dimension," he said.