Authorities on the mainland are now studying plans to potentially allow Hong Kong insurers to invest in its interbank bond market, on top of possibly allowing mainland companies to issue yuan-denominated bonds in Hong Kong.
The move comes as part of the push to internationalize the mainland's financial markets and the yuan.
Hong Kong Monetary Authority Chief Executive Norman Chan has revealed, during his trip to Beijing, that the People's Bank of China and the China Insurance Regulatory Commission are now studying the interbank bond scheme.
Meantime, the National Development and Reform Commission is now looking at the plan for mainland companies to issue yuan bonds in Hong Kong.
China is promoting Hong Kong as an offshore yuan market, with leading companies such as McDonald's and US heavy equipment maker Caterpillar, now set to issue yuan-denominated bonds.
