Financial Secretary John Tsang says falling renminbi savings will have no long-term effects on related offshore businesses.
He said Hong Kong remains on course to become a dominant wealth management hub in Asia given a wide array of investment products it has to offer, the Hong Kong Economic Journal reports.
The renminbi is the world’s fifth most used currency for external payment, reflecting growing demand in trade settlement, he said.
Tsang said the Chinese unit has taken a more important role in world trade amid Beijing’s stepped up efforts to open the capital account.
Also, the renminbi is likely to be included in the International Monetary Fund’s Special Drawing Rights basket anytime soon.
That will help Hong Kong develop more renminbi-denominated financial products and promote cross-border use of the currency, Tsang said.
He said the financial sector should seize opportunities from the central government’s “One Belt, One Road” strategy to create an economic corridor throughout Asia to the Middle East and Europe.
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