I will point out two particular areas for such cooperation. 2  BIS Review 141/2008  First, Hong Kong can be used as a platform for pilot schemes for further expansion of crossborder fund flows. The use of Hong Kong as a financing platform has played an important role in Mainland's economic development and a continued and expanded use should be made going forward. In addition to the well developed platform for Mainland enterprises to list on the Hong Kong's stock exchange, consideration could be given to facilitate SMEs to raise funds through bond issuance with credit enhancement in Hong Kong. At the same time, Hong Kong can serve as a platform for more investment outflows from the Mainland, which would improve investment choices for Mainland investors. For instance, financial instruments issued in Hong Kong could be allowed to be listed on the Mainland, or Mainland investors could be allowed to use their own foreign currency deposits to invest overseas through Hong Kong. Second, Hong Kong can be a testing ground for the international use of the renminbi, a process closely related to Mainland's capital account liberalisation. The renminbi business scheme in Hong Kong, which is supported by a clearing arrangement provided by the People's Bank of China, has developed steadily since its launch in early 2004. It has now extended from personal banking to bonds issuance by Mainland financial institutions. Renminbi deposits in the Hong Kong banking system have also risen significantly over the last few years.
It is also important that we increase the transparency of shadow banking activities. In this respect, the entry into force of the European regulations EMIR2 and SFTR should be a considerable step forward. As I’ve been talking about macroprudential measures regarding large corporations, and our subject is financial stability, I’d like to bring you up to date on bank lending in France: lending to the private sector – to households and businesses – is growing rapidly in France, at a rate of close to 6% per year. At the next meeting of the High Council for Financial Stability (HCSF) in June, we shall look at whether we need to introduce additional measures. To sum up, we have not yet finished exploring the issue of non-bank finance and I am certain that today’s event will make a valuable contribution to the debate. I would like to pass the floor now to Aurélia End, who will host the round table, and wish you all an excellent morning. 3/3  BIS central bankers' speeches