ContextSpeech by the Governor of the People's Bank of China at the Hong Kong FIC and Bond Connect Summit, in front of Hong Kong's Chief Executive.
Why it mattersChina's central bank governor presents Chinese bonds and the renminbi as alternatives for global investors, a recurring theme of China's financial opening.
- Global interest-rate and inflation volatility is rising.
- Cross-border use of the renminbi is still limited.
- Hong Kong must stay resilient to external shocks.
- Promote Chinese bonds as a stable diversification asset.
- Support an integrated trading platform and a deeper RMB asset pool in Hong Kong.
- Expand Payment Connect and RMB cross-border settlement.
Read the speech summary
1. Hong Kong's progress and advantages
At a Hong Kong financial summit attended by Chief Executive John Lee, PBOC Governor Pan Gongsheng praised the city's momentum since early 2025: strong listings, dim sum bond issuance above 2 trillion yuan, and its status as the largest offshore yuan centre and largest cross-border wealth hub. He credits central government support and cites Hong Kong's open environment, capital markets, legal system and mainland links, plus China's stable macro policy, innovation focus and 15th Five-Year Plan, with growing global demand for the yuan in investment, financing and reserves. He noted accommodative monetary policy, proactive fiscal policy and a sound financial system on the mainland, and that Hong Kong will draft its first five-year development plan to fit the national strategy.
2. Connectivity and diversified markets
First, deepen connectivity: more listings and bonds, and wider stock, bond, wealth and swap Connect schemes; the Southbound Bond Connect annual quota rises from 500 to 800 billion yuan, its bonds become repo collateral, products widen to Hong Kong dollar and Macau bonds, and China's reserves will raise their Hong Kong allocations. Second, diversify beyond equities into bonds, gold, commodities and derivatives: with global rate and inflation swings rising, the stability of Chinese bonds offers diversification, and low yuan financing costs give Hong Kong a rare chance to draw sovereign and corporate issuers and become the region's leading financing hub. Five-year yuan government bond futures will launch soon, the Bond Connect company will upgrade into a trading-platform operator with CFETS, Northbound bonds will count as collateral at local clearing houses, and a gold vault and clearing link with the Shanghai Gold Exchange plus more yuan commodity products will follow.
3. The offshore yuan hub and stability
Third, strengthen the offshore yuan hub: the HKMA's business facility rises from 200 to 500 billion yuan with tenors up to three years, central banks get a yuan repo facility whose first operation was done with the HKMA, a Bank Indonesia-HKMA local-currency framework supports direct yuan-rupiah trade, fast-payment links expand to more institutions, scenarios and risk controls, and more central bank bills and offshore government bonds will deepen the asset pool; Hong Kong handles over 70% of cross-border yuan settlement. The finance ministry will also be backed in enlarging and diversifying its offshore government bond issues. Fourth, safeguard stability: Hong Kong came through the Asian crisis and the 2008 shock with central support, and, recalling Zhu Rongji's 1998 pledge, he said the central government will keep giving full support, given China's reserves, the world's largest. He invited global investors to join.