Tsang endorses Hong Kong and the renminbi to New Zealand, Chile and Brazil

It’s been a very busy two weeks for Chief Executive Donald Tsang.

He visited New Zealand and Chile and is now in Brazil. In all three countries, Chang promoted Hong Kong's renminbi business and Hong Kong’s ideal location as a centre for raising capital.

In a speech before New Zealand businessmen, Tsang said that local business people would find Hong Kong a reliable base with a common law legal system similar to that of New Zealand.

He said that Hong Kong had a proven track record as a capital-raising centre, and it was the first and only place to issue offshore renminbi, or dimsum bonds.

"Last year, there were 91 dimsum bond issues in Hong Kong. The total issuance value was almost RMB108 billion or over NZ$20 billion," he said.

"I see strong potential for New Zealand companies to raise renminbi capital in Hong Kong to fund operations in the Mainland."

On his arrival in Chile, Tsang met with Minister of Finance Felipe Larrain and Vice Minister of Economy, Development & Tourism Tomas Flores.

He then spoke at the United Nations Economic Commission for Latin America & the Caribbean, on Hong Kong's role in China's development.

The commission's 44 member states aim to contribute to Latin America's economic development, reinforce economic ties among countries and with other nations, and promote the region's social development.

Tsang said the renminbi's internationalisation was the most significant recent development in Hong Kong's role for China.

A renminbi trade settlement scheme has expanded to cover the whole of Mainland China. Companies around the world, including those in Latin America, can now settle their Mainland trade in every Mainland province using the renminbi.

Last year, Hong Kong banks handled RMB1.9 trillion in trade-settlement transactions, or about 92% of all global trade settlement in renminbi.

"The development of offshore renminbi business is not limited to Hong Kong. We encourage financial institutions elsewhere to use Hong Kong as a platform to develop their own renminbi portfolios," Tsang said.

He also addressed the Santiago business community at a dinner hosted by Standard Chartered Bank Chile. He highlighted Hong Kong's advantages and role as China's global financial centre and encouraged Chile's resources sector to consider listing in Hong Kong.

"In each of the past three years, Hong Kong has led the world in terms of funds raised through initial public offerings. While our nation is a major consumer of mining commodities, Chile is a major exporter. It is a promising combination," he said.

Tsang also met Chile's Vice President Rodrigo Hinzpeter, Central Bank Governor Rodrigo Vergara and leaders of the country's National Congress.

Chile was Hong Kong's fourth largest trading partner in Latin America and the 43rd largest trading partner worldwide last year, with an average annual growth of 12.4% in bilateral trade from 2007 to 2011.

Last year, $6.13 billion worth of goods between Chile and the Mainland were routed through Hong Kong.