liquidity support to globa hong kong is a trade settlement hub, processing rmb6. 3 trillion in 2020, up 18 % from 2019, and c to date. • • • hong kong continues to maintain its top position in offshore rmb fx trading, with an average daily t in april 2019 according to the latest bis triennial survey. this is equivalent to 30 % of global trad mainland. the city has maintained its leading position for rmb sw ift payments, with more than 70 % of glob processed through hong kong. the dim sum bond regained momentum in the recent few years after a slowdown in issuance arou witnessed encouraging developments over the past few years, such as with the regular bond and bill of finance and the people ’ s bank of china ( pboc ). the upcoming issuance by shenzhen municipal g yet another new category of mainland issuers. time to give internationalisation another push 9. all these facts and numbers suggest that hong kong has the strongest foundation on which we can launch further efforts to advance the progress of rmb internationalisation. 10. the timing is also right – with the mainland ’ s economic growth continuing to outperform. macro aside, portfolio flow is another major driver. we are seeing increasing capital flows into the mainland markets by international investors, driven by the inclusion of rmb assets in global indices and also the attractive yield pick - up and diversification benefits. in the other direction, there is also an increasing need for mainland investors – be they individuals or institutions – to more efficiently manage their wealth and diversify the allocation through outward investments. a good part of these two - way portfolio flows will be conducted in rmb, and through hong kong. some thoughts on “ how ” 11. so far, the level of the international use of rmb remains relatively low, and is not commensurate to the mainland ’ s economic strength. for example, the mainland is already the world ’ s largest trading nation, but the use of rmb for cross - border trade settlement is only in the range of 15 to 20 % of its total trade volume. some will argue that in order to 2 / 4 bis central bankers'speeches further boost the usage of rmb in trade settlement, we will need to see more active use of rmb as an investment currency in capital market transactions. it is only when you have the right place to invest your money that you will have the incentive to use and hold the

. liquidity, product and infrastructure, which are essential to building a vibrant rmb offshore market in hong kong, i should add that supervisory collaboration is also important in this gradual opening - up process. many of the initiatives to promote the international use of rmb will involve the opening up of the mainland ’ s capital accounts. this must be done in a gradual and risk - controlled manner, which is why you often see quota and eligibility criteria in the initial stage of the connect schemes. this kind of risk - control features requires the close collaboration between the hkma and our mainland counterparts. through such collaboration, we seek to ensure that hong kong is a safe and reliable platform to take forward these new cross - boundary initiatives. 20. some of the ideas that i have just mentioned will take time to materialise. some may need a testing ground to pilot before being scaled up. on this, the guangdong - hong kong - macao greater bay area or qianhai could function as pilot zones in the mainland to test new crossboundary initiatives with hong kong. the wealth management connect is a case in point. conclusion 21. ladies and gentlemen, what i have presented to you is a very brief summary of our thoughts on the role of hong kong in promoting the international use of rmb, but even that, i am sure you will agree, is already quite a menu. and we are already actively exploring some of these policy initiatives with our mainland counterparts. but we cannot do it all on our own. while we need to create the necessary policy headroom, the market should be the one driving the process of rmb internationalisation. the active participation of market players is critical. i would therefore warmly welcome views and suggestions from members of tma and its subcommittees on ways to enhance the liquidity, to expand the product diversity and to build an efficient infrastructure in order that we can further develop the role of the hong kong markets in the process of the internationalisation of the rmb. 22. with its 76 institutional members and over 3, 000 individual members, the tma has been providing broad - based support to foster market development in hong kong. we believe the hkma and the tma ’ s relationship can also be a mutually beneficial one. as you can probably tell by now, the internationalisation of the rmb poses many unique opportunities for hong kong and it is time to do our part. we continue to look to the tma ’ s active participation in this journey for hong kong