(Yicai Global) Dec. 6 -- Financial institutions should strive to widen the use of Chinese yuan in the Guangdong-Hong Kong-Macao Greater Bay Area to enhance Hong Kong’s status as an international financial center, according to a former financial secretary of the special administrative region.

Banking institutions in the Greater Bay Area can facilitate yuan-denominated cross-border transactions, forward foreign exchange contracts, and derivatives to consolidate Hong Kong’s positioning, Jiemian.Com reported today, citing Antony Leung Kam-chung who was talking at a financial forum recently. Hong Kong can play an important part in building an international financial hub in the Greater Bay Area, he added.

Enterprises in the region that has cities such as Guangzhou, Shenzhen, and Hong Kong can issue yuan bonds in accordance with regulations, Leung said. They can support institutional investors in Hong Kong to raise funds in yuan for investments. Moreover, the SAR could develop more yuan-denominated bulk commodity contracts and other risk management tools.

Insurance companies in the mainland and Hong Kong should carry out cross-border reinsurance business in yuan, the expert said. Insurers in Guangdong province, Hong Kong, and Macao could cooperate to develop innovative cross-border products while offering convenient services such as underwriting, policy checking, and claims.

The ex-official also suggested that the mainland and Hong Kong should discuss how to strengthen collaboration in new financial technologies and green finance, including services related to virtual currencies such as payments and asset management.

Editor: Emmi Laine, Xiao Yi