Is Hong Kong China’s global “super connector”?

A renminbi depreciation threatens Hong Kong from its “super connector” status. Norman Cha, Chief Executive of the Hong Kong Monetary Authority, challenges this assertion

February 3, 2015
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Transcript

World Finance: At this year’s Asian Financial Forum Chief Executive CY Leung highlighted the “super connector” role that his city plays between China and the rest of the world, but given the recent depreciation of the RMB, one has to wonder if this role will still hold. That’s a question that World Finance posed to the highest monetary authority in the city.
Norman Chan: The exchange rate of renminbi is only one factor affecting financial market developments, but the reforming opening process will not be changed. I’ve just talked to some bankers at the seminar, and they think a two-way flow, a widened band of renminbi exchange rate is actually good for bankers, because that will create the hedging needs for a lot of companies trading and investing in China.

The point is that Hong Kong as the window or springboard for connecting the rest of the world and mainland China will continue to be strengthened, and the internationalisation of the renminbi is a key component in this process, and we are doing very will in this regard.