Adviser urges backing for HK derivatives

There is a need to support Hong Kong in piloting more derivative products to reinforce its position as an offshore renminbi risk management center, said a national political adviser.

Zhang Yichen, a member of the 14th National Committee of the Chinese People's Political Consultative Conference, the country's top political advisory body, said that Hong Kong has a competitive edge in leveraging risk management tools to diversify and absorb financial market risk.

Zhang, who is also chairman and CEO of CITIC Capital Holdings Ltd, told China Daily that this advantage stems from its adoption of the common law system and the fact that its financial markets are predominantly driven by institutional investors.