In other words, the conversion window in Shanghai serves a supplementary rather than the main source of RMB funds for trade settlement purpose. In order to further promote the steady development of the RMB market in Hong Kong, the following refinement measures will take effect from January next year: (1)  Participating AIs can square their positions with the Clearing Bank when there is a shortfall of RMB arising from conversions with customers for cross-border trade settlement transactions. In other words, Participating AIs should first utilise the RMB trade proceeds purchased from their customers to satisfy requests for RMB conversions for trade settlement transactions before purchasing RMB through the Clearing Bank in Shanghai. (2)  Participating AIs can only purchase RMB through the Clearing Bank in Shanghai for their customers in relation to trade transactions due for payments to the Mainland within three months. The HKMA and the PBoC estimate that the demand for RMB conversion in Shanghai would be within RMB 4 billion in the first quarter of 2011. The volume of conversion will be assessed and appropriately adjusted after the first quarter taking into consideration the actual circumstances. (3)  In order to maintain a steady supply of RMB, the HKMA will, as a standing arrangement, provide RMB funds of RMB 20 billion through its currency swap arrangement with the PBoC, for cross-border RMB trade settlements.
Norman T L Chan: Latest developments of renminbi business in Hong Kong Briefing by Mr Norman T L Chan, Chief Executive of the Hong Kong Monetary Authority, on the latest developments of renminbi (RMB) business in Hong Kong, Hong Kong SAR, 23 December 2010. *  *  *  Good afternoon. Today I would like to provide an update on the latest developments of renminbi (RMB) business in Hong Kong. With the strong support from the Central Government and the relevant Mainland authorities, the development of RMB business in Hong Kong has been encouraging this year. Significant growth and progress have been seen in various areas, including cross-border trade settlement, deposits, bond issuance and the introduction of financial products in the second half of this year. The total amount of RMB deposits increased markedly from RMB 60 billion at the end of last year to RMB 220 billion in October and RMB 280 billion in November this year. Of these deposits, those from personal customers amounted to RMB 120 billion, with a total of 2.2 million accounts and an average deposit size of RMB 54,000. Deposits from corporate clients amounted to RMB 160 billion at the end of November, with 117,000 accounts and an average deposit size of RMB 1.3 million.