Reform provides opportunities for HK
(Xinhua)
Updated: 2006-07-27 13:36
The Qualified Domestic Institutional Investor scheme, or QDII, introducing in
the Chinese mainland, provides new opportunities for RMB financial services in
Hong Kong, said the Bank of East Asia Wednesday.
The bank said in its
newly published analysis that RMB business in Hong Kong received a further boost
after Chinese Premier Wen Jiabao indicated that Hong Kong's imports from the
Chinese mainland for local use would be settled in RMB, which opens the door for
other businesses to be settled in RMB in the future.
It predicted that
as long as Hong Kong is able to prove that the new measures have no significant
adverse impact on the mainland financial system, more RMB investment products
could be introduced in Hong Kong.
The analysis said the opening of RMB
services in Hong Kong is a win-win proposal. It will make the territory as a
financial intermediary for the mainland market, while the mainland can use Hong
Kong as a testing point for the reform of its financial industry.
Meanwhile, it reminded the investors in Hong Kong since the Chinese
mainland is ready to open up its financial market, Hong Kong must be ready to
respond to the upcoming challenges.
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