HKSAR should reinforce role as world's top offshore renminbi hub, political adviser says

The Hong Kong Special Administrative Region should reinforce its role as the world's leading offshore renminbi hub to help advance the internationalization of the Chinese currency and support Beijing's efforts of building a stronger financial system, Adam Kwok, a national political adviser, said.

Kwok, a member of the National Committee of Chinese People's Political Consultative Conference and executive director of Sun Hung Kai Properties Ltd said the 15th Five-Year Plan (2026-30) period offers Hong Kong a "rare window of opportunity".

A key question, Kwok said, is how Hong Kong's global financial center can align with Beijing's goal of building a "financial powerhouse".

The outline of the 15th Five-Year Plan explicitly supports Hong Kong in consolidating its position as an international financial center and strengthening its role as a global offshore renminbi business hub and international asset and wealth management center, while advancing orderly financial market connectivity with the Chinese mainland.

Hong Kong already serves as the world's largest offshore renminbi center, handling around 75 percent of global offshore renminbi payments. The city's offshore yuan liquidity pool and its dim sum bond market have both surpassed 1 trillion yuan, making Hong Kong a key platform in the currency's global use.

To further strengthen that role, Kwok proposed enhancing stock and bond market connectivity between Hong Kong and the mainland.

He also called for expanding renminbi financial products and growing the dim sum bond market, including encouraging more central government institutions to issue medium- and long-term bonds in Hong Kong. Mainland insurers and mutual funds should also be encouraged to increase investment in yuan bonds issued in the city, he said.

Kwok also suggested exploring the creation of a dedicated yuan internationalization fund in Hong Kong that could raise funds through offshore bond issuance and invest in Hong Kong equities, helping build a stable offshore asset pool for yuan holdings.

Additional proposals include encouraging more mainland and international companies to establish yuan treasury centers in Hong Kong and expanding the scope of the cross-border Wealth Management Connect scheme.