Hong Kong Monetary Authority: will further optimize the "renminbi exchange" in the future, including expanding the list of trading firms.

Hong Kong Monetary Authority Vice President Li Dazhi stated that the daily net trading limit for the "Cross-boundary Wealth Management Connect" launched in May 2023 has recently been raised to 45 billion RMB, and will continue to be further optimized in the future, including expanding the list of trading counterparts. Hong Kong is expanding its liquidity management tools to meet the needs of international investors. The monthly trading volume of the "Cross-boundary Wealth Management Connect" has increased from 50 billion RMB at its launch to 380 billion RMB in May this year, nearly seven times the growth; with a daily average clearing amount of 25 billion RMB, far exceeding expectations. Li Dazhi pointed out that the global derivative market size is nearly 70 trillion USD, reflecting the vigorous development of the market, playing a key role in risk management, capital allocation, and financial stability. Hong Kong has developed from a regional market to a global hub, being one of the largest over-the-counter derivative markets, especially for RMB foreign exchange and interest rate products. He believes that benefiting from a regulatory framework that balances innovation and stability, coupled with the enhanced integration of the mainland and Hong Kong financial markets, opportunities are brought for cross-border derivative product trading. As the market becomes more interconnected and complex, regulatory transformation is necessary to reduce risks and promote innovation. The Hong Kong Monetary Authority and the Securities and Futures Commission are closely cooperating to ensure that Hong Kong's regulatory system is aligned with global standards while considering local circumstances.