MNI BRIEF: PBOC To Add Forex Reserves Allocation In HK - Pan
MNI (BEIJING) - The People’s Bank of China will increase the allocation of its foreign exchange reserves in assets in Hong Kong and expand the HK-Mainland Connect schemes to support growth of financial markets, said Governor Pan Gongsheng on Monday according to the Bank’s website.
The PBOC will support more high-quality enterprises to list and issue bonds in Hong Kong, and optimise Connect schemes in stocks, bonds, wealth management, and interest rate swaps, he said, noting efforts will also be made to deepen financial cooperation in the Guangdong-Hong Kong-Macao Greater Bay Area, thereby creating broader opportunities for HK financial development. (See MNI: PBOC Underpinning Yuan, But US Tariffs Key - Advisors)
The Bank will further work on Cross-boundary Wealth Management Connect and QDII (Qualified Domestic Institutional Investor) schemes, implementing improvements to mutual fund recognition arrangements in a bid to better meet the cross-market and diversified asset allocation needs of residents in both regions, he said, pointing out the measures aim to attract more Mainland and international capital to Hong Kong while continuously opening financial sectors such as private equity funds, venture capital funds, private banking, family offices, and hedge funds.