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RMB trade in HK sees rapid development

08-17-2011 20:31 BJT

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Chinese Vice Premier, Li Keqiang, has attended a ceremony to launch the issue of renminbi-denominated Chinese treasury bonds in Hong Kong. The 20 billion yuan of treasury bonds is the largest-ever sale. Michael Wang takes a look.

People used to go to stores like this to change their RMB for Hong Kong dollars.

But now, buying things in Hong Kong is a lot easier for people from the Chinese mainland.

Trading in the Chinese yuan in Hong Kong began in 2003.

The Bank of China in Hong Kong was authorized by Bank of China on the mainland as clearing bank for RMB business.

Since then, RMB business in Hong Kong has soared.

In 2009, the Chinese government launched a pioneer project in five mainland cities for cross-border trade to be settled in RMB on a trial basis.

This opened the gate for the currency's internationalization.

The RMB's importance in Hong Kong has also increased.

He Guangbei, Chief Executive of People's Bank of China (Hong Kong), said, "RMB business development has developed rapidly over the past year. RMB deposits were 100-billion one year ago, but now they had reached 550-billion by the end of June, a five and a half-fold increase within a year."

The RMB also increasingly appeals to Hong Kong residents.

The Chinese Ministry of Finance has previously issued RMB treasury bonds in Hong Kong twice, for 6 billion yuan and 8 billion yuan respectively in 2009 and 2010.

This new issue is seen as a good investment.

"The business and trade between two sides used to be made in Hong Kong and US Dollars. With the growth in China's economy, the RMB has gone a long way towards globalization. It is now frequently adopted in trade settlement. It'll bring more convenience to the cooperation between the mainland and Hong Kong." He said.

Last year, China's renminbi trade settlement topped 500 billion yuan, more than 70 percent of it handled by Hong Kong banks. More than 80 percent of Chinese RMB trade settlement went through the city in the first quarter of this year.

The growth of the RMB market in Hong Kong is playing an important part in the central government's drive in building the city as an offshore RMB center.


Editor:Zheng Limin |Source: CNTV.CN

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