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The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA), together with Paris EUROPLACE and the Hong Kong Trade Development Council, organised a seminar on "Renminbi Internationalisation: A New Era" in Paris on October 28. The seminar was attended by more than 160 representatives from corporates, banks and other financial institutions.
In his keynote presentation, Mr Norman Chan, the Chief Executive of the HKMA, said, "In just five years' time since the Renminbi trade settlement pilot scheme was introduced in 2009, the policy headroom for the international use of Renminbi has been expanded significantly, with more and wider bridges linking the onshore and offshore Renminbi markets. Currently, some 20 per cent of China's external trade, 30 per cent of foreign direct investments into China and 18 per cent of outward direct investments from China are settled in Renminbi."
"Against this trend, Hong Kong has developed into a global hub for offshore Renminbi business, offering a comprehensive one-stop Renminbi financial platform. French banks have been making good use of the offshore Renminbi market in Hong Kong to serve their customers to expand their China and Renminbi related businesses."
Mr Chan said further that, "With the internationalisation of Renminbi, we are in a new era that presents new opportunities for global trade, finance and investment. The use of Renminbi will help further strengthen trade and financial ties between China and France. With the signing of a Memorandum of Understanding for co-operation between the Banque de France and the HKMA, Paris and Hong Kong will collaborate to develop stronger financial links between the two centres in developing offshore Renminbi businesses."
The presentation was followed by a panel discussion joined by senior representatives from Banque de France, Paris EUROPLACE, and financial institutions from Hong Kong and Paris. The seminar was the tenth overseas roadshow conducted by the HKMA since early 2011. This was also part of the "Think Asia, Think Hong Kong" promotion programme organised by the Hong Kong Trade Development Council in Paris.
Background note (Renminbi (RMB) business statistics updated till September 2014):
At end-September 2014, outstanding RMB customer deposits and certificates of deposit amounted to RMB944 billion and RMB183 billion respectively, totalling RMB1,128 billion. Banks in Hong Kong handled RMB trade transactions of RMB606 billion in September 2014 and a total of RMB4,535 billion in the first three quarters of this year, having grown by 73 per cent over the same period in 2013. Issuance of RMB dim-sum bonds in Hong Kong amounted to RMB164 billion during the first nine months of this year, 40 per cent more than the issuance for the entire 2013. Outstanding RMB lending by banks increased by 44 per cent to RMB167 billion from RMB116 billion at end-2013. The average daily turnover of the RMB Real Time Gross Settlement System reached RMB782 billion in September 2014, 69 per cent more than the daily average of RMB462 billion in the fourth quarter of 2013.
Ends/Wednesday, October 29, 2014
Issued at HKT 11:56
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