Hong Kong well placed to help Central Asia grow yuan trade, leading banker says

Hong Kong has the “most complete renminbi financial ecosystem” and is well placed to serve as a hub for Central Asian countries seeking to expand the currency’s use in trade and investment, according to a veteran banker.

Stephen Chan Man, deputy chief executive of Bank of China (Hong Kong), also said on Thursday that the high-level delegation led by Chief Executive John Lee Ka-chiu next month to Kazakhstan and Uzbekistan was an opportunity to deepen financial ties with the region under a “hub-to-hub” model.

“If the two hubs can effectively connect, it will form a stable and reliable financial and commercial corridor,” said Chan, who will join the delegation as the acting chairman of the Hong Kong Association of Banks.

He added that Hong Kong, the world’s largest offshore yuan centre, had “the most complete renminbi financial ecosystem” covering deposits, foreign exchange, bonds and liquidity pool, positioning it as the natural choice for Central Asian countries looking to expand renminbi usage in trade and investment.

Chan said the city’s financial sector could provide syndicated loans and bonds for long-term transport and energy projects, while supporting cross-border payments and supply chain financing.

Last September, the Development Bank of Kazakhstan issued a 2 billion yuan (US$280.8 million) bond in Hong Kong, marking the first such listing in the city by a Central Asian state-owned enterprise.