Hong Kong Aids Renminbi Internationalization: Signs Action Plan for Collaborative Development of Shanghai and Hong Kong International Financial Centers

At the Lujiazui Forum held in June 2025, Hong Kong was prominently featured as a key player in the internationalization and digitalization of the Renminbi.

Lujiazui Forum 2025

The Lujiazui Forum is an international high-level dialogue platform that addresses major financial issues. This year’s forum was co-hosted by the Shanghai Municipal People’s Government, the People’s Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission.

Financial Opening-Up and Cooperation for High-Quality Development in a Changing Global Economy

Themed “Financial Opening-Up and Cooperation for High-Quality Development in a Changing Global Economy,” the forum gathered government officials, financial regulators, leaders in finance, prominent think tanks, and scholars from multiple countries. They delved into topics such as global monetary policy, capital market development, financial innovation in science and technology, and inclusive finance.

The Financial Secretary of Hong Kong, Mr. Paul Chan, attended the forum and witnessed the signing of the “Action Plan for Collaborative Development of the Shanghai and Hong Kong International Financial Centers,” a move to further propel the internationalization of the Renminbi and safeguard the rights of investors and traders.

Action Plan for Collaborative Development of the Shanghai and Hong Kong International Financial Centers

The signed Action Plan encompasses 38 measures across 6 areas, aimed at deepening the interconnectivity between the Mainland and Hong Kong financial markets, enhancing the linkage and cooperation between the two regions’ capital markets, supporting eligible Shanghai enterprises to list and raise funds in Hong Kong, and strengthening collaboration in fields such as commodity trading, reinsurance, green finance, and fintech. This plan specifies the directions for cooperation between Shanghai and Hong Kong, injecting new and enriched content into multi-level and multi-field financial collaboration. It includes measures to deepen financial interconnectivity, support for Mainland enterprises to “Go Global”, and the promotion of standard alignment and financial innovation.

Hong Kong's Strategic Financial Role in Renminbi Internationalization

Hong Kong’s strategic position is evident in several aspects: on one hand, by enhancing offshore Renminbi liquidity, diversifying Renminbi financial products, improving financial infrastructure, and exploring new markets, Hong Kong provides strong support for the global outreach of the Renminbi. On the other hand, through deepening initiatives like the Shanghai-Hong Kong Stock Connect and Bond Connect, Hong Kong further strengthens market linkage with the Mainland, enriching product options for domestic and international investors and attracting more capital flows to both markets.

Advancing Digital Renminbi and Market Reforms

In terms of the digital Renminbi strategy and financial market reforms, with the establishment of an International Operation Center for Digital Renminbi, Hong Kong, as the largest offshore Renminbi center, will play a crucial role in advancing the digitalization process of the Renminbi internationally.

Regulatory Improvements and Financial Stability

Furthermore, measures set by the People’s Bank of China, including the establishment of a personal credit reporting agency and an interbank market transaction data repository, aim to enhance cross-border payment clearance systems, promote the use of Renminbi in international trade and investment, and strengthen financial regulatory cooperation, thereby ensuring financial stability. These initiatives will further improve the transparency and regulatory effectiveness of financial markets, with Hong Kong’s support in offshore Renminbi operations providing significant assistance to these reforms.

Commitment to Investor and Trader Protection

Hong Kong is committed to protecting the rights of investors and traders. The Hong Kong Securities & Futures Commission recently issued guidelines to prevent unauthorized trading incidents, safeguarding investor rights. These measures not only solidify Hong Kong’s position as an offshore Renminbi hub but also provide more diversified financing options for listed companies and enterprises in Hong Kong, reducing currency risks, enhancing cross-border payment efficiency, and expanding channels into Mainland and international markets.

Looking ahead, with its unique financial advantages and close cooperation with the Mainland, Hong Kong will continue to play a significant role in the global financial ecosystem, driving the internationalization and digitalization of the Renminbi, while contributing to regional and global economic development.