Hkma Rmb Essay

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HONG KONG The Premier Offshore Renminbi Business Centre HONG KONG The Premier Offshore Renminbi Business Centre International Use of the Renminbi – A New Era 2 Why Use the Renminbi? 4 Hong Kong: The Premier Centre for Offshore Renminbi Business 5 Global Hub for Renminbi Trade Settlement 8 Global Hub for Renminbi Financing 10 Global Hub for Renminbi Foreign Exchange Trading and Asset Management 13 Global Hub for Renminbi Clearing and Settlement 16 Other Unique Features of Hong Kong as an International Financial Centre 19 Development of Offshore Renminbi Business in Hong Kong 21 Frequently Asked Questions 22 List of Participating Banks of the Renminbi Clearing Platform in Hong Kong 24 2 HONG KONG The Premier Offshore Renminbi Business Centre International Use of the Renminbi — A New Era China has achieved remarkable growth in the past two decades and its trade and investment linkages with the world have greatly increased. It is now the second largest economy and the largest trading nation in the world. As China’s economy becomes increasingly integrated with the rest of the world, the renminbi has become more widely used in trade and investment activities. Since 2009, when the Mainland Chinese authorities launched a pilot scheme for renminbi trade settlement, the channels for the use of renminbi in cross-border transactions with Mainland China have expanded significantly. Today, all trade and other current account transactions between Mainland China and other parts of the world can be conducted in renminbi. Foreign direct investment into Mainland China, and outward direct investment from Mainland China to the rest of the world, can also be carried out in renminbi. There are also increasing channels in terms of cross-border pooling of renminbi funds for corporates, as well as the extension of renminbi loans by offshore banks to

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