##ncies. of course, if the proceeds are to be used on the mainland, the moving of funds into mainland china will have to meet the requirements there. by the same token, banks can now also offer rmb financing to their clients, including enterprises which conduct direct investments under the pilot scheme for the settlement of odi in rmb introduced in january this year. as the pool of offshore rmb funds in hong kong continues to grow, there will be huge opportunities for financial institutions to take part in rmb financing as well as in the origination, distribution, investment and trading of rmb bonds. the second dimension is rmb trade settlement. the rmb trade settlement pilot scheme was introduced in july 2009. the initial scope of the scheme was rather limited. but in less than a year, the pilot scheme was expanded to cover enterprises in 20 provinces and cities on the mainland and their trade transactions with any parts of the world can now be settled in rmb. the expanded scope has led to a rapid growth in the transaction volume of rmb trade settlement in hong kong, which was increased from a monthly average of 4. 5 billion yuan in the first half of 2010, to more than 87 billion yuan in the fourth quarter, representing an almost twenty - fold increase during the period. to date, hong kong accounts for about 75 % of mainland ’ s rmb trade settlement. this clearly demonstrates the strong preference of market players for making use of hong kong ’ s platform for rmb trade settlement. the highly efficient and reliable rmb real time gross settlement ( rtgs ) system in hong kong has played a significant role here. we are the first and so far the only place outside mainland china that has developed a full - fledged rmb rtgs system, enabling us to handle the settlement of cross - border trade between the mainland and other economies in a safe and efficient manner. china is one of the biggest trading nations in the world. the potential for further increases in rmb trade settlement is considerable given that the current volume only accounts for a small fraction of total trade between china and the rest of the world. rmb trade settlement proceeds will represent an important and sustainable source of growth in offshore rmb funds in hong kong. the third dimension is rmb wealth management business. the rmb wealth management business in hong kong took off last year after the rmb clearing agreement was revised in july 2010. the rmb clearing agreement lays down the framework for rmb business in hong kong. i will

customer ( kyc ), we can enable businesses to access financing more efficiently, minimise duplication of effort and improve customer experience. we are committed to leveraging technology to transform banking operations. for instance, by enabling more direct access to commercial credit reference data through cdi, we can enhance the speed and accuracy of credit assessments conducted by banks, facilitate smoother trade financing, and support the growth of businesses across various sectors. the fourth element centres around digitising supply chain and manufacturing platforms while connecting these isolated digital networks. the digitisation of supply chain and manufacturing platforms is essential to optimise operations and drive productivity gains. by embracing technologies such as the internet of things, blockchain and artificial intelligence, we can create a seamless flow of information, goods and services across the entire value chain. we can also enhance visibility and traceability throughout the supply chain by integrating and connecting siloed digital networks. this will enable businesses to collaborate more effectively, reduce costs, improve inventory management and respond more swiftly to changing market conditions. to achieve this synergy, we are also exploring the possibility of connecting cdi with the supply chain 2 / 4 bis - central bankers'speeches platform developed by the fung group, hoping to further digitise trade and trade financing through the use of innovative technologies. finally, the fifth element that i would like to talk about focuses on exploring more advanced digital payment options. as digital trade continues to evolve, it is crucial to embrace innovative payment solutions. by exploring innovations such as programmable money and smart contracts, we can help businesses reduce transaction costs, mitigate risks, and develop new business models. programmable money can enable automated and secure transactions with preset conditions, while smart contracts can ensure trust, efficiency and transparency in transactions. at the hkma, we are actively exploring payment innovations such as central bank digital currencies at both wholesale and retail levels through project mbridge and project e - hkd. these advanced payment options have the potential to further enhance hong kong's competitiveness in the global marketplace. now that i have introduced all five elements in digitising trade and finance, it is important to note that they are not isolated, but rather interconnected and mutually reinforcing. at the hkma, we are working hard to connect these key components through cdi, with a focus on achieving interconnectivity and interoperability. digitalisation of government services and open government data provide the foundation for enhanced collaboration and more seamless