Business leaders' take, 25 years on after handover

Hong Kong is expected to play a more important role as a bridge linking the mainland and overseas economies, Eddie Yue Wai-man said.

To realize that goal, strengthening connectivity with the mainland, developing financial technology as well as green finance are the main directions in which the city's future financial development will move. "They will offer Hong Kong's financial industries great opportunities while enhancing the city's status as an international financial hub," Yue noted.

During the past few years, the HKMA has worked together with a number of agencies on a research program named Multiple Central Bank Digital Currency Bridge, or mBridge, which aims to facilitate real-time cross-border payments across different jurisdictions.

Yue revealed that within this year, the HKMA will launch a pilot trade settlement system, as one of about 15 applications of mBridge, to address the issues of cross-border payments.

Meanwhile, Yue noted that enhancing the infrastructure of the whole system is key to strengthening the link between the special administrative region and the mainland.

The authority plans to improve and upgrade the Central Moneymarkets Unit, a system that provides multi-currency settlement, clearing and custodian services for debt securities, with the aim of making it an international bond settlement platform.

The improved CMU system is expected to invigorate the offshore renminbi market in Hong Kong by promoting its liquidity, thereby enhancing the city's position as an international offshore renminbi center, said Yue, adding that it might also benefit the acceleration of the internationalization of the renminbi.