SPECIAL GOVERNMENT ADDRESS: Julia Leung, Acting Secretary for Financial Services and the Treasury Bureau, Government of Hong Kong SAR
Thu Mar 22, 2012
In a thought-provoking presentation, Julia Leung details Hong Kong’s development as offshore RMB centre. Excerpts from her speech are presented below
We are facing a macro environment not seen before. Gross government debt-to-GDP ratio is 81% in the UK, 88% in the Eurozone, 102% in the US and 233% in Japan. Sovereign debt in aggregate is today at levels not seen since the Second World War.
Amid these macro and regulatory challenges, the most decisive value proposition Hong Kong offers to fund managers is the China advantage. And the biggest China advantage that Hong Kong has is as the testing ground for mainland China’s capital account reform. In this connection, we have built ourselves into an offshore RMB centre.
Let me explain. Post Lehman’s collapse, China took a decision in 2009 to facilitate the use of RMB in cross-border trade and investments. It made good sense. China just overtook Japan as the second-largest economy...
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