Hong Kong to bolster risk management role under Five Year Plan

20-09-2021

Hong Kong to bolster risk management role under Five Year Plan

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Hong Kong remains the best place for international companies from mainland China to form captives and will continue to play a unique role in the country’s national development, according to the Hong Kong financial secretary. Paul Chan Mo-po also said the special administrative region should be supported in creating more risk management products. 

Speaking to reporters for the state’s China Daily newspaper, Chan said that Hong Kong had a vital role under the government’s 14th Five-Year Plan (2021-25) approved in March. 

“We are of the view that the renminbi internationalization is a very important policy priority of the central government. Hong Kong’s offshore renminbi centre status needs to be further promoted,” said Chan

Total offshore renminbi capital in the city accounts for about 60 percent of the country’s total at about 800 billion yuan ($124 billion), he added, with Hong Kong handling over 70 percent of all offshore renminbi settlements.

“We have to offer more products in terms of investment and risk management, for example, futures products in renminbi to manage foreign exchange risk. In terms of an offshore renminbi business centre, there is a lot that we can do,” Chan noted.

As well developing the city’s asset management sector”, the city is also “beefing up measures to cement the city as a risk management centre,” according to the report. 

Chan said: “When mainland companies go global, Hong Kong is the best platform for them to establish their regional headquarters. In this particular place, with the free flow of capital, people, information and a very sophisticated financial infrastructure, Hong Kong is the best place for companies to manage their risks, to take out appropriate insurance and form their captive insurance companies to manage the risks of their global businesses,”.

China Daily, Risk Management, Insurance, Reinsurance, Paul Chan Mo-po, Hong Kong, China

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