CNH ~ Offshore (Yuan) Renminbi ~ CNH (Yuan) Going Global Updates ... and CNH becoming de facto new currency in Hong Kong ... and .."CNH" Internationalizing the RMB: Perceptions and Realities ~ China's Currency Going Global with CNH ...
August 16, 2011
China Vice Premier Affirms Hong Kong's Status as Yuan Hub
HONG KONG—Chinese Vice Premier Li Keqiang Wednesday affirmed Hong Kong's position as an offshore yuan and financial hub, announcing a laundry list of measures to enhance the city's international competitiveness through closer ties with mainland China.
"Maintaining the city's long-term prosperity and stability is the starting point of the central government's policy for Hong Kong," Mr. Li said at an economic forum hosted by the Hong Kong and Chinese governments.
"The central government will actively support the growth of the yuan market in Hong Kong," he said. Mr. Li, widely seen as a leading contender to succeed Premier Wen Jiabao in 2013, is in Hong Kong for a three-day visit.
As many analysts had expected, Mr. Li unveiled measures to boost the offshore yuan trade in Hong Kong, as well as an expanded scope for Chinese yuan trade settlement to include all of China.
Mr. Li said the government supports the use of yuan as foreign direct investment into China, following calls for less stringent rules to make it easier to bring yuan funds raised offshore back to the mainland.
Mr. Li also expressed support to allow overseas investors to use offshore yuan to invest in domestic securities with an initial amount of 20 billion yuan.
Hong Kong has been developing into a major offshore yuan hub since China removed some restrictions last year on the use and circulation of its currency. The city's push to increase its yuan profile reflects its desire to remain competitive with the emergence of Shanghai's financial and trading markets.
http://online.wsj.com/article/SB10001424053111903480904576513251443874060.html?mod=djkeyword
