HONG KONG - Developing renminbi business will bolster Hong Kong's status as a financial center, said KC Chan, the Secretary for Financial Services and the Treasury of the Hong Kong government on Wednesday.

Chan spoke to reporters after chairing a panel discussion on specific arrangements for renminbi direct investment at a seminar on the implementation of the Chinese central government's measures to support Hong Kong's financial development.

"During today's forum, when we talked about Hong Kong's development into an offshore renminbi center, a few main points we emphasized were Hong Kong's capital market size and our connectivity with international financial centers," he said. "In that context, Hong Kong has very good potential to develop into an offshore renminbi business center."

Chan also said he was pleased to learn that Hong Kong tops the World Economic Forum's Financial Development Index.

"We will be working hard to maintain Hong Kong's competitive advantage and to increase Hong Kong's capital market. And more importantly, in future years, developing Hong Kong's renminbi business will give our financial center an additional boost."

He said the lack of an economic growth engine would affect world markets, including Hong Kong.

"The situation in Europe is worrying. We have to be prepared for the slowing down of the world economy. A lot of growth engines are here and in the Chinese Mainland. We should try to use every opportunity to make progress in our economic development," he said.