Hong Kong’s business community has responded enthusiastically to the central government’s wide range of measures that are expected to provide a strong uplift for the local economy, with business leaders predicting that the city’s financial and service sectors will strengthen significantly.

Global banking giant Credit Suisse described the steps as vital in allowing offshore yuan to be channeled back onshore for investment purposes, and integral to the ongoing yuan internationalization process and the development of Hong Kong as a yuan offshore center.

Hong Kong-based lender, Hang Seng Bank, backed by HSBC Holdings Plc, welcomed the central government’s pledge to deepen economic and trade cooperation between the mainland and Hong Kong.

“To the local lenders in Hong Kong, these new measures, announced on Wednesday, will create more business opportunities in their Hong Kong and mainland businesses,” said the bank’s Chief Executive Officer Margaret Leung Ko May-yee.

She believes that more diversified investment channels will emerge after the mechanism regulating yuan flow between the two sides is further relaxed, thereby promoting cross-border trade, finance and business development in yuan in future.

The measures supporting the development of an offshore yuan trading center and an international asset management center will also benefit the city’s some 100,000 small-and-medium sized enterprises (SMEs), according to Anthony Wu, chairman of the Hong Kong General Chamber of Commerce.

“Hong Kong’s development as an offshore financial center will help SMEs lower the cost of cross-currency transactions.

“The increases in option for yuan-denominated investment instruments, in addition, will also help SMEs better manage their cash-flow and exchange-rate risks,” Wu said.

Hong Kong Tourism Board chairman James Tien Pei-chun said the new policies are encouraging for the entire tourism industry as it will not only mean greater business opportunities for local travel agencies, they will help resolve problems like “zero-fee” tours that have dented Hong Kong’s reputation.

Roy Chung Chi-ping, chairman of the Federation of Hong Kong Industries, said the measures are particularly helpful under the current uncertain economic environment worldwide. He expects the central government’s firm support to help Hong Kong repel a possible new round of international economic fluctuations.

“Apparently, Hong Kong’s unique status within China has been consolidated,” said Chong Tai-leung, a professor at the Department of Economics at the Chinese University of Hong Kong.