The People's Bank of China (PBOC), China's central bank, on Monday announced a series of measures to reinforce Hong Kong's status as an international financial center.

The PBOC is working closely with other financial regulators on the mainland and in Hong Kong to improve the offshore renminbi market, optimize financial market connectivity, and enhance the convenience of payment and settlement, said PBOC Governor Pan Gongsheng at the 18th Asian Financial Forum held in Hong Kong.

The regulators will introduce a renminbi trade financing liquidity arrangement with terms of 1 month, 3 months, and 6 months with a total quota of 100 billion yuan (13.64 billion U.S. dollars), providing a stable and low-cost funding source for renminbi trade financing for commercial banks in Hong Kong, Pan said, adding that they will also proactively support Hong Kong in introducing offshore renminbi government bond futures.

The regulators will further enhance the mechanism of the southbound bond connect, support mainland investors in more easily purchasing multi-currency bonds and extend the settlement time. They will also orderly expand the scope of investors and increase the number of custodian banks, Pan said.

"The prosperity and development of the capital market are the core and foundation of Hong Kong's status as an international financial center," Pan said, pledging to support more high-quality enterprises to list and issue bonds in Hong Kong, and increase the proportion of national foreign exchange reserves allocated in Hong Kong to open up broader space for Hong Kong's financial growth.

The two-day forum is expected to attract around 3,600 financial and business representatives from over 50 countries and regions to attend over 40 sessions on topics including the global economic outlook, new markets opportunities, artificial intelligence, fintech, sustainability and philanthropy.

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