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Duowei: The Strategic Path of Chinese Renminbi Internationalization behind the Planning of the Guangdong, Hong Kong, and Macao Great Bay Area

On February 21, the Guangdong, Hong Kong and Macao Great Gulf District Development Planning Outline was held in Hong Kong. From the attendance of officials, the level of the meeting was quite high. Lin Nianxiu, Deputy Director of the National Development and Reform Commission of China; Lin Zhengyue, Chief Executive of the Hong Kong Special Administrative Region; Ma Xingrui, Governor of Guangdong Province; and Chui Sai, Chief Executive of the Macao Special Administrative Region, delivered speeches. On February 19, the official website of the People’s Bank of China (PBOC) had published a low-profile article entitled, “Thoughts on the Internationalization of Renminbi (RMB) and the Convertibility of Capital Accounts.” The author was the International Division of the PBOC. The article explained why China wants to promote the internationalization of the RMB. According to the official website of the PBOC, the International Division is responsible for business dealings and cooperation with financial organizations in Hong Kong, Macao, Taiwan, and other central banks. Taken together with the contents of the meeting and the “Guangdong, Hong Kong and Macao Great Gulf District Development Plan” that the State Council of China just released on February 18, which repeatedly mentioned the opening up and cross-border use of the RMB, the Chinese monetary authorities’ strategic path for the internationalization of the RMB is becoming clear.

Liang Haiming, Dean of the Silk Road Zhigu Research Institute, said, in an interview with China’s official media, Securities Daily, that, in the context of the development of Guangdong, Hong Kong, and the Macao Great Bay Area, the financial system carries an important historical mission. The Great Bay Area has to increase its efforts in exploring financial innovation, especially in cross-border business and RMB internationalization, as the bond that connects China with the world. The high-profile attendance at the meeting also reflects the Chinese government’s emphasis on the planning for the Guangdong-Hong Kong-Macau Great Bay Area and its “frontier position” for the internationalization of RMB.

Source: Duowei News, February 21, 2019