'HK must play key role in RMB's internationalisation'
Financial chief Paul Chan said on Sunday that Hong Kong must seize the opportunity to develop offshore renminbi businesses as the currency’s internationalisation picks up speed.  In his weekly blog, Chan said the demand for the currency in international transactions will only continue to rise. He pointed out Hong Kong can play a crucial role in this process by offering a wider range of products and deepening interactions with the mainland’s financial market. His comment comes as the dual counter scheme – which will allow investors to choose to trade in either Hong Kong dollars or renminbi – is set to launch on June 19. Chan said the first batch of 24 stocks in the dual counter list covers technology, finance, real estate, and consumer industries, accounting for about 40 percent of the total daily trading volume. HKEx on Friday released an updated dual counter list including 24 stocks such as Tencent, China Mobile, Li Ning, Baidu, and Alibaba. "They will provide more investment options for Hong Kong and offshore renminbi holders worldwide. In the future, the number of shares that can be traded using the dual counter model will increase in stages," the financial chief wrote. Chan also said the city must strive to improve its offshore renminbi market to meet the global needs arising from an increasingly complex geopolitical situation. "The US banking industry's turmoil, [US] government debt problems, and huge deficits being monetised have damaged international confidence in the US dollar, prompting many countries to diversify their foreign exchange reserves," he said.