SHANGHAI, July 17 (Xinhua Silk Road) -- The People's Bank of China (PBOC), alongside Hong Kong's top financial regulators, has rolled out a new package of policy measures aimed at strengthening Hong Kong's fixed-income, currency and offshore renminbi (RMB) markets, further deepening financial integration between the Chinese mainland and the Hong Kong Special Administrative Region.
In a recent interview with Xinhua Finance in Shanghai, senior executives from Standard Chartered said that these measures send a strong signal of China's further opening of its capital markets. They emphasized that the "twin-engine" synergy between Shanghai and Hong Kong -- two premier global financial hubs -- will inject robust momentum into China's financial opening and the next chapter of RMB internationalization.
-- Clear signal of market opening, policy coordination
Unveiled at the 2026 Fixed Income, Currency, and Bond Connect Summit in Hong Kong last week, the new measures included expanding the annual investment quota for the Southbound Bond Connect mechanism and enhancing offshore RMB liquidity.
For Standard Chartered Group Chief Executive Bill Winters, these announcements were a highly welcome development.
"I think it's a very clear commitment to a number of things," he said. "One is a commitment to the ongoing opening up of the Chinese capital markets. Two is a very clear statement about the importance of Hong Kong in the internationalization of the Chinese capital markets."
Winters added that the visible policy alignment between the financial hubs of Shanghai and Hong Kong is "very reassuring and supportive" for global banks with deep roots in both markets.
He also pointed to the trial run of Hong Kong's new central clearing and settlement system for gold as evidence of a broader, third commitment: the full maturing management of financial assets across both onshore and offshore China. This development included building a more robust yield curve for Chinese credit products -- starting with government bonds -- and integrating gold more deeply into the broader financial ecosystem.
Winters believed the close cooperation between Shanghai and Hong Kong in the gold sector would naturally extend to London, given its status as the world's premier hub for gold trading, clearing, settlement and storage. "All of this was very supportive and, I think, very thoughtfully delivered," he added.
Ben Hung, Standard Chartered's President, International, echoed this sentiment, noting that the new gold clearing system bridged financial markets with physical delivery, which is crucial for reserve-asset diversification and acceleration of the international use of the RMB.
"In a world of fragmentation, I think diversification of reserves is critical. Gold is one form of diversification; the RMB is another," Hung said.
He emphasized that connecting these assets is vital not just for China, but for central banks worldwide seeking to diversify their reserves.
-- "Twin engines" to drive next phase of RMB internationalization
The synergy between the two financial hubs was further solidified at last month's 2026 Lujiazui Forum in Shanghai, where China unveiled an action plan to develop offshore finance in the city.
Hung described this as a natural evolution for the world's second-largest economy, noting that "it takes more than one financial center to operate under that opening up."
He highlighted the distinct comparative advantages of each city: Shanghai is deeply integrated with the domestic economy through its tax, accounting and regulatory frameworks, while Hong Kong operates under a different system that connects it seamlessly to global capital markets.
"Using a twin-engine approach addresses what is a huge process in the history of the evolution and strengthening of a strong currency," Hung observed. "I do think that plays very much into the next stage of development."
Jean Lu, CEO of Standard Chartered China, described the current phase of RMB internationalization as "RMB 2.0."
She noted that while the RMB faced challenges overseas in the previous phase, such as insufficient liquidity, a limited range of investable assets and a lack of risk management tools, the policy measures unveiled at this year's Lujiazui Forum were precisely targeted to further tackle these bottlenecks.
Looking ahead, Lu outlined the interactive development of offshore finance between the two cities.
Shanghai will serve as an "onshore offshore center" for the RMB, leveraging its onshore advantages in commodities, liquidity, and risk management tools to support Hong Kong and other offshore markets. Meanwhile, backed by abundant liquidity, Hong Kong will continue to act as a highly mature offshore hub, perfectly complementing Shanghai.
Lu emphasized that Standard Chartered has been actively positioning itself at the intersection of RMB business, Free Trade Zone (FTZ) finance, cross-border finance, and multi-currency liquidity management. The bank is also a pioneer among foreign institutions in driving financial innovation, such as participation in the cross-border e-CNY transfer service (CBETS).
"We aim to leverage Standard Chartered's position as a leading international bank in both cities to participate in regulatory innovation and promote the integration and connectivity of financial markets on both sides," she added.
Reflecting this long-term commitment, Standard Chartered established a chief investment officer (CIO) office in Shanghai earlier this year. Focused on deep-dive Chinese market analysis, the office helps overseas investors identify opportunities in China's equity and bond markets -- a proactive step to capture the tailwinds of the RMB 2.0 era.
Despite lingering geopolitical headwinds, Standard Chartered remains steadfast in its support for RMB internationalization, driven largely by the evolving needs of its clients, Winters noted.
He observed that an increasing number of Chinese domestic clients are expanding overseas -- diversifying their manufacturing footprints into third-country locations such as the Association of Southeast Asian Nations (ASEAN), the Middle East, and Africa. Meanwhile, interest from overseas clients in China continues to intensify. Beyond simply purchasing Chinese goods, they are increasingly sourcing components, technology, and intellectual property from the country.
Winters also pushed back against the narrative that globalization is going backwards, arguing that hard data points to more cross-border trade, investment and payments than ever before. "Globalization is going forward in different ways," he concluded, "but the nature of that globalization is changing a lot." (Contributed by Gao Pan, edited by Li Xueqing with Xinhua Silk Road, lixueqing@xinhua.org)
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