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The following is issued on behalf of the Hong Kong Monetary Authority:
The Chief Executive of Hong Kong Monetary Authority (HKMA), Mr Norman Chan, spoke at a seminar in Dubai on the international use of renminbi (RMB) and the one-stop services RMB financial platform provided by Hong Kong on January 21. The seminar was attended by 150 representatives from corporates and financial institutions from the United Arab Emirates (UAE) and the region.
In his keynote presentation, Mr Chan said, "Trade activities between the UAE and China have grown more than ten times over the past decade, from less than US$3 billion in 2001 to US$37 billion in 2011. China is the UAE's second largest non-oil trading partner and the second largest source of the UAE's imports. The greater use of RMB in bilateral transactions will provide further impetus for trade and investment links between China and the Middle East to expand in the times ahead, which will be mutually beneficial for both sides. Furthermore, as the internationalisation of RMB progresses, the rapidly expanding offshore RMB market and greater access to the onshore RMB market are also providing new opportunities for the public and private asset managers in the Middle East to diversify and enhance their portfolio investments."
Mr Chan also said, "Hong Kong is the gateway for corporates and institutions to conduct trade and investments with China. Built on this unique position, Hong Kong has become a global hub for offshore RMB business, providing an ideal platform for a whole range of business and financial transactions conducted in RMB. In 2012, RMB trade settlement transactions handled by banks in Hong Kong registered some 30% growth and exceeded RMB 2.6 trillion yuan. RMB financing activities are expanding, with the size of the RMB dim-sum bond market having grown by 60% to RMB230 billion yuan. Furthermore, the Hong Kong RMB Real Time Gross Settlement system is handling a growing volume of cross-border and offshore transactions, with average daily turnover amounting to some RMB260 billion yuan most recently, compared to only RMB5 billion yuan in 2010."
The seminar was part of a series of overseas roadshows conducted by the HKMA since early 2011 to promote Hong Kong as the offshore RMB business centre.* In addition, a number of meetings were also held with the senior management of banks and asset managers in the UAE.
* Apart from the latest round of roadshow in the Middle East, the HKMA also conducted roadshows to promote Hong Kong as the offshore RMB business centre in Australia, Russia, UK, Spain, South America and Japan.
Ends/Tuesday, January 22, 2013
Issued at HKT 12:26
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