Hong Kong is seeking to further develop its role as an offshore center for the yuan and Chinese bonds.

The city will set up a central clearing system for yuan-denominated bond repurchase transactions and strive to bolster offshore liquidity in the Chinese currency, Chief Executive John Lee said in his annual policy address Wednesday.

“We will continue to enhance the mutual market access regime and reinforce our status as the world’s largest offshore renminbi business hub, contributing to the internationalisation of the yuan,” he said.

Lee announced the measures as part of a series of initiatives to support the flagging real estate sector and boost spending, as China’s slowdown weighs on the local economy. Hong Kong is the yuan’s largest offshore trading center, the city also took steps earlier this year to deepen financial links with China.

China and Hong Kong Broaden Investment and Financing Link

The currency measures are “building upon previous years’ moves,” said Lynn Song, chief economist for Greater China at ING Bank. It’s “another step in a long process to build up the infrastructure.”