These are some of our unique strengths, and it is not easy for others to replicate them, at least in the short term. With all these developments, where should we go next? At the policy level, I believe it would be important to build an effective two-way channel to increase interaction between the RMB onshore and offshore markets. A potential area that can be explored is to promote the use of RMB for conducting crossborder real economic activities such as FDI and ODI. Given the significant share of Hong Kong in Mainland’s FDI and ODI, building such a two-way channel will also be conducive to the sustainable development of the offshore RMB market in Hong Kong. On this, I am glad to see that the People’s Bank of China has, as I briefly mentioned a few minutes ago, recently launched a pilot scheme, under which ODIs by Mainland Chinese enterprises are allowed to be settled in RMB upon approval of relevant Mainland authorities. As for FDI in RMB, there have already been some pilot cases (such as McDonald’s) and it is hoped that the relevant arrangement can be formalised in due course. Apart from FDI and ODI, we have been in close communication with the Mainland authorities to explore other possible channels. In particular, we welcome the announcement of the People’s Bank of China in August last year regarding the introduction of a pilot scheme allowing eligible entities in Hong Kong to make use of their RMB funds to invest in the Mainland’s interbank bond market.

Global investors’ allocations to the region have been rising, alongside Asia’s increasing weight in global indices. The region has become a favourite hunting ground for investors, in search of the next unicorns. Households and institutions in the region have themselves become ample sources of wealth looking for investment opportunities. These pools of capital can be mobilised through our capital markets, to finance the region’s high-growth enterprises. Asia has an abundance of channels through which companies and capital can meet. There are established bourses as well as newer, tech-focused exchanges. There is also a growing number of blockchain-enabled platforms. Example: DBS Bank has launched the DBS Digital Exchange for the tokenisation, trading and custody of digital assets. Singapore’s Value Proposition Singapore is well poised to become one of the leading fund-raising centres in Asia. There are four key dimensions to Singapore’s value proposition: a vibrant ecosystem for private equity and venture capital; the premier Asian hub for solutions in investment risk management; a rapidly growing debt capital market; anda promising equity capital market. First, a vibrant private equity and venture capital ecosystem. The thriving start-up and 1/4  BIS central bankers' speeches  Fintech scene in Singapore and Southeast Asia have drawn active interest from PE/VC players from around the world. PE/VC assets under management in Singapore have doubled over the last five years. They grew by over 50% last year despite the COVID-19 pandemic and recession, testament to the resilience of the ecosystem. Technology and innovation are making private equity and venture capital investments more accessible.