Hong Kong could emerge as the world’s leading financial centre as the central government pushes to internationalise the yuan – a move that will advance the nation’s development under the 15th five-year plan while also driving the city’s own growth, a National People’s Congress (NPC) deputy has said.
Li Yinquan said the city stood to benefit from increased capital as the yuan became more internationalised, since most global renminbi reserves and transaction volumes would naturally be held in Hong Kong.
“As long as the stock, flow and trading volume are mostly in Hong Kong, this is a very huge benefit for Hong Kong,” the veteran financier told the South China Morning Post on the sidelines of the annual “two sessions” political gatherings in Beijing.
“If China becomes the world’s largest economy and … a financial powerhouse, the proportion of international renminbi among international currencies rises, and with the growth of the Chinese economy, at that time, Hong Kong may become the number one international financial centre in the world.”
NPC deputy Li Yinquan is a veteran financier. Photo: Handout
Yuan internationalisation was a key focus of the national 15th five-year plan unveiled on Thursday during the two sessions.