(Yicai Global) Oct. 20 -- Relevant authorities in Hong Kong and mainland China are discussing the possibility of free circulation of China's yuan in the Guangdong-Hong Kong-Macao Greater Bay Area, said Liu Yixiang, secretary of Financial Services and the Treasury Bureau of the Government of the Hong Kong Special Administrative Region.
Yuan free-flow pilots may be conducted in parts of the Guangdong-Hong Kong-Macao Greater Bay Area to reduce the adverse impact occasioned by widespread informal currency circulation and the development of capital account, said Liu Yixiang at a Hong Kong legislative meeting, as caixin.com reported today.
When Secretary of Guangdong provincial committee of the CPC Hu Chunhua visited Hong Kong in July, he had proposed realizing the free flow of yuan in Guangdong-Hong Kong-Macao Greater Bay Area to the Hong Kong government, Liu Yixiang said. However, current talks are merely tentative and no substantive plan has yet taken shape, he added.
Hong Kong, Macao and Guangdong also signed a cooperative agreement on July 1 on the Greater Bay to consolidate and heighten Hong Kong's international financial status, especially emphasizing the special administrative region's functions as an offshore yuan clearinghouse and international asset management center.
The concept of Guangdong-Hong Kong-Macao Greater Bay Area was first proposed in 2009. It includes nine cities in Guangdong, Hong Kong and Macao. It is an important strategy for China to build a world-class conurbation in the region.