5-Year Plan & Policy Address: stock market measures & offshore rmb hub

The Five-Year Plan and Policy Address have also outlined measures to improve the city's stock market system, including streamlining listing procedures and consolidating Hong Kong's role as an offshore renminbi hub.

Amid robust performances in the city's IPO market, the government also works to further beef up the stock market system.

The CE reveals that the Securities and Futures Commission will begin consultation efforts next year to streamline prospectus disclosure requirements, to facilitate dual listings of quality overseas companies in Hong Kong and the Hong Kong Exchanges and Clearing will also consult the market on amendments related to specialist technology listing, including the review of market cap thresholds as tech stocks accounted for over 40% of overall market liquidity.

Together with HKEX, SFC is wooing enterprises from Southeast Asia and Belt and Road countries to come to Hong Kong for dual primary or secondary listings.

The Hong Kong Monetary Authority will also encourage more foreign banks in Hong Kong to join the Cross-border Interbank Payment System directly to expand the renminbi clearing network. It will also deepen cooperation with central banks in ASEAN and the Middle East while strengthening ties with Latin America and Central Asia. Together with Hong Kong Association of Banks, the HKMA will visit Indonesia to promote Hong Kong's advantages of its offshore renminbi services.

To strengthen Hong Kong's position as an offshore RMB hub, the Monetary Authority will work with the People's Bank of China to explore optimising RMB currency swaps and the issuance of offshore yuan short-term debt instruments while supporting the building of an offshore RMB yield curve.

HK Resident from Switzerland JEAN MICHEL ROUX: "We know that the policy of China is to make the renminbi more viable as an international currency which is very logical. The policy of using more renminbi for international transactions and to detach ourselves from the US dollar is good, it's positive."

Regulators will also explore expanding product scope under the "Southbound Bond Connect" to include products with Hong Kong Dollar bonds and yuan bonds as underlying assets with a bond repurchase business.

On the gold market, the HKMA is studying the possibility that the Exchange Fund will moderately increase its holdings in gold.

The Hong Kong Gold Central Clearing and Settlement System will officially be launched in the first quarter of next year.