China's Hongkong Is Leading A Lot In Pursuit Of A Long-Term Battle For Offshore RMB.

< p > with the promotion of "a href=" http://sjfzxm.com/news/index_cj.as "RMB" /a "internationalization, many cities such as Hongkong, London and Singapore have become offshore RMB centers. < /p >
In the battle of "P", China Hongkong is far ahead: Taking the cross-border trade settlement of RMB as an example, the vast majority of cross-border trade settlement takes place in Hongkong. Statistics released by the Hongkong monetary authority show that as of the end of June this year, Hongkong's banking institutions had RMB deposits of about 698 billion yuan. In contrast, according to the report released last year by the city of London, the London Interbank and its customers have RMB deposits of about 109 billion yuan. Singapore is also striving to become a center for offshore RMB business. Market participants expect the local RMB deposit to reach 50 billion ~600 billion yuan. < /p >
< p > some analysts believe that the contention of offshore RMB centers will be a protracted war. < /p >
< p > the only way to internationalize < /p >
Less than five years ago, since July 2009, China has pushed forward the RMB settlement in cross-border trade, and RMB internationalization has been developing rapidly in just over a period of more than five years. < /p >
At present, the RMB has become the main settlement currency of "a href=" http://sjfzxm.com/news/index_s.asp "border trade < /a > P. In the trade between China and neighboring countries such as Mongolia, Vietnam, Burma, Laos and Thailand, the RMB has become the main settlement currency, especially in the Greater Mekong sub regions such as Vietnam, Burma, Laos and Thailand, and the RMB has become the main currency and reserve currency. < /p >
At the same time, the volume of RMB trade in cross-border trade and investment increased significantly. P Statistics show that in 2012, cross-border trade in goods, trade in services and other recurrent items, foreign direct investment and foreign direct investment in RMB settlement totaled 2 trillion and 60 billion yuan, 875 billion 200 million yuan, 29 billion 200 million yuan and 251 billion yuan respectively. < /p >
"P >" the internationalization of RMB is ultimately inextricably linked to the large circulation of RMB in the offshore market. The offshore RMB market provides a platform for its circulation abroad, creating convenient conditions, thus becoming an organic part of RMB internationalization. Lian Ping, chief economist of Bank of communications, believes that offshore market is an organic part of RMB internationalization. < /p >
< p > multi center battles < /p >
At the end of P > 2012, the central bank opened the gate in Qianhai, Shenzhen, and passed the a href= "http://sjfzxm.com//business/" RMB loan business < /a >. In early January 2013, a number of banks and Qianhai enterprises held a collective signing ceremony for cross-border RMB loans. The banks involved in the first projects included HSBC, BOC Hongkong, and Wing Lung. < /p >
< p > "Qianhai's opening of cross-border RMB loans has set an important milestone for the internationalization of RMB." Feng Wanmei, President of HSBC Hongkong area, said that further opening of RMB financing channels will promote the development of RMB loans, promote cross-border circulation of RMB funds between Mainland China and Hongkong, and further deepen the offshore RMB market. < /p >
< p > "becoming an offshore RMB center, China Hongkong is facing competition from London, Singapore and even Paris." A financial industry in Hongkong said that China is now the second largest economy in the world. After that, the use and demand of RMB will become more and more. {page_break} < /p >
In a forum at the end of 2012, P, French central bank governor, said publicly that Paris is actively seeking to become an offshore RMB market after Hongkong and London. He also said that Paris is clearly lagging behind London in developing offshore renminbi markets. At present, the size of RMB deposits in Paris market is 10 billion yuan, becoming the second largest RMB pool in Europe after London. < /p >
< p > in Asia, Singapore is a strong catch-up in Hongkong. At present, a total of more than 4000 Chinese enterprises are operating in Singapore, of which 140 are listed on the Singapore Stock Exchange. And now there are offshore RMB bonds listed at the new stock exchange. Singapore is also the first exchange in the world to provide RMB forward contracts clearing services for OTC transactions. < /p >
< p > for Singapore, a considerable number of financial professionals know Chinese and English, and are familiar with the market situation in China and the West. As Asia's financial centre, Singapore has successfully operated the financial products of other Asian countries. < /p >
< p > London is the largest financial center in the world. It has a mature network of international networks and is second to none in terms of consumer protection and legal integrity. But London's biggest weakness is that there are not enough financial professionals familiar with the Chinese market. < /p >
Qu Hongbin, chief economist of HSBC China, said that the offshore RMB business in Singapore and London is at the initial stage. At present, the liquidity and depth of the offshore RMB market in London are still very limited, and Hongkong is still the main market in P. "It is expected that the London market will gradually increase renminbi business in the future." < /p >