Chinese Vice Premier Li Keqiang said Wednesday that Hong Kong plays an "irreplaceable role" in China's rapid economic growth, and will be key to making the yuan an international currency.

Li, the expected successor to Premier Wen Jiabao as head of China's day-to-day administration, announced a series of measures to boost economic integration with the former British colony, which returned to China in 1997.

Those steps include making it easier for Hong Kong firms to do business in the mainland, and boosting the city's status as a hub for Beijing's ambitious goal to turn the yuan into a global currency rivalling the US dollar.

"Hong Kong's destiny and prosperity link closely with those of the motherland," Li told an economic forum in the semi-autonomous territory.

The premier-in-waiting said it was key that Hong Kong "continues to bring out the unique advantage it has developed over the years and play its irreplaceable role in (China's) reform, opening-up and modernisation drive".

Li arrived in Hong Kong Tuesday on a three-day visit as he looks to showcase himself ahead of an expected leadership reshuffle in Beijing next year.

He also presided over a signing ceremony Wednesday to launch Beijing's third, and so far biggest, sovereign bond issue in Hong Kong with plans to raise 20 billion yuan ($3.1 billion).

Beijing's previous sovereign bond issues in September 2009 and November 2010 in the southern Chinese city -- which maintains its own currency -- raised six billion yuan and eight billion yuan, respectively.

US fast food giant McDonald's, heavy equipment maker Caterpillar and the World Bank have also launched yuan-denominated bond offerings in Hong Kong.

"We will gradually increase the size of issuance and work for the development and improvement of the (yuan) bond market in Hong Kong," Li said Wednesday.

Chinese denominated bonds worth about 70 billion yuan were issued in Hong Kong during the first seven months of the year, 95 percent more than the total for all of 2010, the city's Chief Executive Donald Tsang told the forum.

"Hong Kong is blessed to enjoy the advantages of 'one country, two systems'," said Tsang, referring to the model of autonomy under which Hong Kong returned to Chinese rule.

Li meanwhile said China's government would "exert its utmost to do everything that contributes to the prosperity and stability of Hong Kong".

His comments come as Hong Kong authorities face rising public anger over soaring property prices, while activists call on Beijing to speed up promised political reforms, including direct elections for the territory's leader.

A small demonstration calling for the release of Chinese political detainees was held near the forum Wednesday, but a heavy police presence kept activists out of sight.

Tensions flared last month when Wang Guangya, director of the Hong Kong and Macau Affairs Office of the Chinese State Council, or cabinet, said local officials' colonial-era roots meant they "don't know how to be a boss".

Hong Kong officials including Tsang publicly bristled at the criticism. The city maintains its own political and legal system, and guarantees civil liberties not seen on the mainland.

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