Hong Kong Became Key RMB Settlement Center for Cross-Border Trade, Reports China's Economy & Policy-Gateway International Group30 Jul 2012 • by Natalie Aster
Use of the RMB for settlement of cross-border trade has boosted the rapid growth of offshore RMB businesses. At present, an offshore RMB market with Hong Kong as the center has been formed.
The new report "The Development of the Hong Kong Offshore RMB Market" by China's Economy & Policy-Gateway International Group provides a summary of the status of offshore RMB markets, an analysis of challenges to be addressed, and predictions and countermeasures based on developments in the domestic financial market.
The Development of the Hong Kong Offshore RMB Market
Published: April, 2012
Price: US$ 200,00
The report states that since the implementation of RMB settlements for cross-border trade, offshore RMB businesses have grown rapidly, and some new development trends have emerged, which require further analysis.
Since the pilot project allowing RMB settlement for cross-border trade was initiated in July 2009, the authorities have acted to make improvements in various aspects such as the number of pilot areas, the business scope, participants, and supporting policies. The use of the RMB for cross-border trade settlement has been fully operational since February 2012 and all enterprises engaged in the import and export of goods, services, and so on, can choose to use the RMB for pricing, clearing, and payments. Driven by policy support and market demand, the value of RMB settlements are continuously growing. In 2009, 2010, and 2011, the sum of RMB settlements in China was 3.58 billion Yuan, 506.34 billion Yuan, and 2.08 trillion Yuan respectively. The Chinese Mainland and Hong Kong shared in the total, with settlements amounting to 1.9 trillion Yuan in Hong Kong in 2011, an amount that accounted for 92% of the total and more than five times the amount in 2010. This illustrates that Hong Kong has become the main RMB settlement center for cross-border trade.
Driven by the increased use of the RMB in cross-border trade, offshore RMB related businesses have developed rapidly, and a basic framework as an offshore RMB financial center has been formed in Hong Kong.
More information can be found in the report “The Development of the Hong Kong Offshore RMB Market” by China's Economy & Policy-Gateway International Group.
To order the report or ask for sample pages contact firstname.lastname@example.org