Hong Kong’s strengths promotes RMB internationally

Hong Kong is well positioned to be the driving vehicle for the internationalization of the Renminbi (RMB) as the city ranks third globally and first in the Asia-Pacific region in the Global Financial Centres Index in 2026.

Many countries are now trading in the Chinese yuan (RMB), accounting for more than a quarter of China's cross-border trade settlements. China uses bilateral swap lines, offshore clearing hubs, and direct trade agreements to promote the RMB globally.

Major countries and regions trading or settling transactions in RMB includes Russia, uses the RMB extensively for bilateral trade and energy payments following Western sanctions; ASEAN nations use the RMB for regional trade; the Gulf and Middle Eastern nations use local and yuan settlements, particularly for the oil trade; and other emerging and Asian partners such as Bangladesh, Pakistan, Sri Lanka and Mongolia use the RMB for specific bilateral projects, trade financing and debt settlement.

And, of course, the Belt and Road Initiative countries increasingly use the RMB for specific bilateral projects, trade financing, but it still remains secondary to the US dollar. It is only natural that China actively promotes RMB trade settlements with partner nations to bypass third party currency risks.

The role of Hong Kong’s internationalizing of the RMB was a key point in the Chief Executive John Lee’s first five-year plan and policy address to the Legislative Council last month.

This endeavor is not merely about currency exchange, he said. It encompasses a multi-faceted strategy to enhance the RMB's liquidity, deepen its offshore market, and solidify its position as a global trade and investment currency.

Hong Kong's unique "One Country, Two Systems" framework, coupled with its robust financial infrastructure and legal system, provides an ideal platform for these initiatives.

One of Hong Kong's most significant contributions is its position as the largest offshore RMB liquidity pool. This is achieved through a comprehensive ecosystem of RMB-denominated financial products and services. The city actively encourages the issuance and trading of RMB bonds (Dim Sum bonds), providing international investors with diverse investment opportunities in the currency. Furthermore, Hong Kong facilitates RMB trade settlement, making it easier for businesses globally to conduct cross-border transactions in RMB, thereby reducing foreign exchange risks and transaction costs. The expansion of RMB financing activities, including syndicated loans and private equity funds denominated in RMB and further broadens the currency's utility for international businesses.

Hong Kong continually innovates its financial market infrastructure to support RMB internationalization. The RMB Real -Time Gross Settlement (RTGS) system in Hong Kong is a cornerstone, offering a highly efficient and secure platform for interbank RMB payments and settlements. This system connects banks globally, enabling seamless RMB transfers and enhancing the currency's liquidity. The city has also been at the forefront of exploring digital RMB initiatives, with trials and pilot programs aimed at integrating the digital yuan into its financial landscape, potentially offering new avenues for cross-border RMB flows and enhancing transaction efficiency.

To deepen the offshore RMB market, Hong Kong actively promotes the listing and trading of RMB-denominated securities. The government's efforts to facilitate the inclusion of RMB trading counters in the Stock Connect schemes (connecting Hong Kong with Shanghai and Shenzhen stock exchanges) are pivotal. This allows international investors to trade mainland A-shares directly using offshore RMB, significantly boosting demand for the currency and enhancing its investment appeal. Similarly, the ongoing work to enable the inclusion of REITs (Real Estate Investment Trust) in mutual market access schemes and to streamline procedures for dual listing further diversifies RMB investment options.

Beyond direct financial mechanisms, Hong Kong fosters RMB promotion through strategic collaborations and policy alignments with mainland China. The city's active participation in the Greater Bay Area (GBA) development provides a natural extension for RMB usage. Initiatives like enhancing cross-border data interchange (e.g., Commercial Data Interchange connecting with the Trade Single Window) and promoting cross-border payment systems (linking with UnionPay) aim to facilitate RMB flows and integration within the GBA, creating a larger economic sphere where RMB is the preferred currency for trade and investment.

Hong Kong's role as a risk management center is crucial for RMB internationalization. By offering sophisticated hedging instruments and risk management solutions for RMB-denominated assets and liabilities, Hong Kong enhances confidence among international investors and businesses in using the currency. The city's robust regulatory framework and legal certainty provide a secure environment for RMB financial activities, distinguishing it as a trusted platform for the currency's global expansion.

According the Chief Executive of the Hong Kong Monetary Authority, Eddie Yue, to consolidate Hong Kong’s role as the global offshore RMB hub, we need an enabling ecosystem that is characterised by easy access, “stickiness” and growth opportunities for international capital.

With the joint efforts of the banking sector, Hong Kong will continue to strengthen its offshore RMB hub function in support of the real economy, unlocking greater potential to drive RMB internationalisation.

In essence, Hong Kong's promotion of the RMB is a strategic, multi-pronged approach that leverages its strengths as an international financial center, its advanced infrastructure, and its close ties with the mainland. By continually enhancing liquidity, broadening product offerings, and fostering seamless cross-border flows, Hong Kong remains indispensable in the journey towards the RMB's greater global prominence.

Mark Pinkstone

** 博客文章文責自負,不代表本公司立場 **

The idea that mainland nurses are being hired in Hong Kong to replace locally trained nurses is totally false and planted in the media as a cheap publicity stunt by the champion of the nurses.

The preposterous suggestion first surfaced on a September 17 Commercial Radio talk show when a disciplined services psychiatric nurse said there was an “unwritten rule” that the Hospital Authority reserved some recruitment spots for mainland Chinese nurses. He added that his daughter, who wanted to follow in her father’s footsteps, was unable to find a job after graduating.

The 30,000-strong Association of Hong Kong Nursing Staff immediately waded in by issuing five “demands”, including a call to prioritize the hiring of local graduates. They should have done their homework. But, in reality the five so-call “demands”, as reported by local media, were actually the association’s aims and objectives.

The Association simply urged the authorities to prioritize employment for fresh local nursing graduates amid reports of some graduates struggling to secure public hospital positions and suggested slowing down or carefully calibrating the intake of non-locally trained nurses to match actual local recruitment realities.

The Association’s chairman, Tse Kin-keung, said he was unsure how authorities did the maths, but that the association was aware of more fresh graduates failing to find a job this year. He said introducing non-locally trained nurses should take into account local recruitment. He suggested the hiring of non-locally trained nurses should be slowed down.

The Hospital Authority (HA), armed with a treasure trove of facts and figures, strongly rebutted the claim saying that less than 0.5 per cent of all nurses in Hong Kong were not locally trained.

Some 99.8 percent of nurses in public hospitals were locally trained. This, said a government spokesman, reflected that locally trained nurses remain the backbone of the public healthcare system.

The government is concerned that the suggestion that the HA has an “unwritten rule” to hire non-local (mainland) nurses over locals could have an adverse impact on its recruitment drive to fill vacancies within the HA.

Secretary for Health Lo Chung-mau said, "I don't want recent comments about 'graduation and then unemployment' to dampen the interest of our younger generation in joining the nursing profession. Nurse training takes time; it’s not something you can do overnight. If these false statements affect recruitment next year or in the future, we will bear the consequences. This isn’t about an isolated case, such as someone who couldn’t find work because he applied to the Hospital Authority after graduation, chose to take a year-long trip, returned later, and then claimed he couldn’t find work. I think it’s also irresponsible to generalise from a single, isolated case to the broader situation that all nurses can’t find jobs. This will affect the profession’s development and, ultimately, the Hong Kong healthcare system and the public will suffer.”

There are currently about 50 non-locally trained registered nurses (RN) serving in the HA, accounting for less than 0.2 per cent of the total number of nurses in the HA. In other words, about 99.8 per cent of RNs working in the HA are locally trained.

With an ageing population and the continuous growth in demand for healthcare services, the demand for nursing services in Hong Kong remains keen. There are still some 3 200 nurse vacancies in the HA to date, and recruitment is ongoing. This reflects that there remains a genuine demand for nursing manpower in the public healthcare system.

The HA’s load of statistics indicate there were about 4 000 prospective nursing graduates in 2025, of which about 3 500 became Registered Nurses (RNs) or Enrolled Nurses (ENs). Also last year, about 2 500 persons applied for RN and EN posts in the HA, representing about 60 per cent of the total number of prospective graduates of that year.

The figures show that not all graduates chose to join the public healthcare system, with some opting to pursue careers in various sectors such as private healthcare institutions, elderly and rehabilitation services, community nursing organisations, as well as insurance and health management.