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.
Along this positive trend, and with the number of Mainland enterprises eligible for the cross-border RMB trade settlement scheme increased substantially to 67,000 recently and with the refinements that we are going to introduce, I am confident that the offshore RMB market in Hong Kong will continue to develop progressively in the coming year, both in terms of the depth and breadth of the market and product development. Four Hong Kong banks have been approved to participate in the Mainland’s interbank bond market, and the applications by a number of banks are being processed by the Mainland authorities. This will provide a channel for the circulation and capital preservation for the RMB funds in Hong Kong. Meanwhile, we have just been informed that HKMA’s eligibility for investing in the Mainland’s interbank bond market has been approved by the PBoC. We are working closely with the PBoC on the implementation arrangements. Finally, to further promote the development of the RMB offshore business in Hong Kong, the HKMA is making preparations for overseas roadshows with the financial industry, focusing on locations which have growing trade and investment flows with the Mainland. We believe that with our joint efforts, Hong Kong will be able to play its role as an RMB offshore market to the fullest, thereby promoting and supporting the nation’s increasing cross-border trade and investment activities while enhancing and consolidating the status of Hong Kong as an international financial centre. BIS Review 175/2010  3