Hong Kong Explores Wider Use of Renminbi for Payments

The Hong Kong government is looking into ways to expand the use of the renminbi for payments, according to Secretary for Financial Services and the Treasury Christopher Hui. This move is part of the government's efforts to promote the use and globalization of the yuan, as announced in the Policy Address by Chief Executive John Lee. The government has already been collecting renminbi through various channels, including the issuance of yuan-denominated bonds and plans to allow residents to use renminbi to pay for stock stamp duties. To encourage more renminbi transactions, authorities are also pressing ahead with plans to include RMB counters under the Southbound Stock Connect Scheme. Hui emphasized the need to explore more use cases for spending renminbi to mitigate exchange rate-related risks. The government is considering scenarios such as using renminbi for payments on projects related to water imports or training sessions involving mainland institutions. Additionally, the Hong Kong Exchanges and Clearing will announce details this year of new renminbi-denominated, physically settled gold futures contracts.