Hong Kong body urges reforms to keep offshore hub status
HONG KONG (Reuters) - A government body called on Hong Kong's authorities and regulators on Monday to take far reaching reforms to maintain the city's edge as a premier offshore yuan hub and a global financial centre.
In a document titled, "Proposals to advance the development of Hong Kong as an offshore renminbi centre," the government body set out various areas to promote the city's role in the growing offshore yuan business ranging from relaxing restrictions for banks and individuals undertaking yuan trade.
While Hong Kong has been at the forefront of the expanding offshore yuan business, the rapid rise of other global cities such as London, Singapore along with the homegrown challenges of Shanghai and Qianhai have raised concerns the city is losing its competitive edge.
"The report recognises that Hong Kong is facing challenges arising from evolving global macroeconomic forces and emerging local threats, and that Hong Kong's leading position as an international financial centre is not entirely secure unless we work relentlessly to advance our competitiveness," Laura Cha, chairman of the Financial Services Development Council, said.
The release of the report assumes significance as it comes after China's authorities unveiled ambitious plans to reform the economy and set it on a path of sustainable growth.
Set up in January 2013, the FSDC is a high-level, cross-sectoral advisory body to promote the development of Hong Kong's financial services industry.
(Reporting by Saikat Chatterjee; Editing by Jacqueline Wong)
