The storm of revisions in Hong Kong has triggered violent conflicts for months, which seriously affects social stability
Zhao Xijun, deputy dean of the School of Finance at Renmin University of China, said in an exclusive interview with Dawen Group on the sidelines of the “2019 Currency and Financial Roundtable” forum that Hong Kong must continue to maintain its status as an international financial center and an offshore RMB center. It must first ensure the operating environment and foundation Facilities are stable.
Financial institutions need to stay up and running
Zhao Xijun said that the relatively stable operating environment of the financial industry and financial services is the most basic condition that an international financial center should have. “Stable development of the financial industry is possible. If financial institutions cannot even open doors, infrastructure is often damaged. , The financial business will not be able to run. “Secondly, in the long run, once the” riot “becomes the norm, Hong Kong will be no different from the cities in the turbulent environment in the Middle East. The long-term expectations of Hong Kong will change internationally, and personnel will be unsafe. Capital flows are not secure, and finance is most concerned about this insecurity and uncertainty.
“The order of the normal operation of Hong Kong’s financial institutions has been impacted to some extent, but if the basic conditions are restored as soon as possible, security and stability can reduce the impact on Hong Kong’s status as an international financial center.” Zhao Xijun emphasized that if it is still not stable in the future, international expectations are bound to The gradual collapse of Hong Kong will undoubtedly be marginalized.
He said that as the “super contact” for the Mainland to connect with the international market, Hong Kong is the world’s largest offshore RMB hub and plays an irreplaceable role in promoting the internationalization of the RMB. However, if Hong Kong continues its riots, it will affect its continued role as a “bridgehead”. Therefore, to further raise the level of RMB internationalization, Hong Kong needs to restore stability.
Stability can help RMB internationalization
Since the beginning of this year, the central bank has issued six RMB central bank bills in Hong Kong, and the Ministry of Finance has just successfully issued US $ 6 billion in sovereign bonds in Hong Kong at the end of November. Zhao Xijun said that the above measures show that the central government still fully supports Hong Kong’s status as an international financial center and the offshore RMB center under the “one country, two systems” structure.
“Speaking of which, the financial industry still requires the stability of the operating environment and infrastructure, and the stability expected in the future. Without these stability conditions and relying only on the support of the central government, Hong Kong will still face great problems.” Zhao Xijun stressed.