Hong Kong can help internationalise the renminbi
Hong Kong can help internationalise the renminbi
China's capital account is open to action. Since March 17, 2014, the central bank has extended the fluctuation range of the RMB exchange rate against the us dollar to 2 per cent, in the hope that the RMB internationalization process will accelerate. Under the economic reform plan, the central government will gradually eliminate the intervention in the foreign exchange market and strengthen the flexibility of the two-way flow of RMB.
Premier li keqiang recently said that he "continues to support Hong Kong's position as an international financial centre", while Hong Kong is the premier renminbi offshore centre. China economic times reporter interview of Hong Kong people, said before the trade between Hong Kong and Shanghai and shenzhen sea regional cooperation, establish a far broader than other offshore yuan center, on a much larger scale, transactions more convenient circulation system, to promote the country's financial reform and the process of RMB internationalization.
Capital liberalization and reforms have been greatly expanded
"The mainland has entered a stage of deep economic reform, and it is widely believed that the renminbi will be freely convertible by 2020. Therefore, reform of China's capital account opening and interest rate and exchange rate liberalization will continue to expand significantly in the coming years. Hong Kong can strengthen financial cooperation with the Shanghai free trade zone and the qianhai region of shenzhen. "Said liu peiqiong, a professor at Hong Kong polytechnic university and a taiping gentleman.
People's bank of China announced at the end of 2012 before the sea between Hong Kong and set up the mechanism of cross-border two-way loans, allow deep before the sea port of modern service industry zone qualification enterprise, may borrow yuan from Hong Kong bank, loan term and interest rate to decide by both parties. In August 2013, the state council approved China Shanghai free trade area, first try RMB under capital account opening, this is the first central approved onshore offshore market.
Liu Peiqiong think, first of all, refer to the policy that free trade zone in Shanghai, for the former deep sea port of modern service industry zone also establish account management system, allows for deep before the sea port of modern service industry cooperation zone individuals and enterprises can establish free trade of renminbi and foreign currency account, and can be in with the account to handle the funds transfer. In the long run, we will make full use of the above account management system to develop cross-border two-way securities business in qianhai, so that the residents of Hong Kong and shenzhen will carry out cross-border financial investment activities. By establishing a negative list mode and giving pre-entry national treatment, Hong Kong professional services can be provided in the qianhai and guangdong provinces.
Second, we will further promote the establishment of hong kong-invested Banks in the qianhai area and issue yuan loans for overseas projects. At the same time, the cross-border RMB loans made by the bank of Hong Kong should be gradually relaxed, so as to further promote the development of two-way cross-border RMB loans. To study the mechanism of inter-bank lending market between Banks in Hong Kong and Shanghai.
Again, pushing the Shanghai and shenzhen exchanges with the joint venture company of the Hong Kong stock exchange, speed up the development of cross-border financial products, and gradually promote and implementation, deep/two financial products, Hong Kong, Hong Kong and Shanghai cross-border issuing and listing each other, seek connectivity trading and clearing the direction and measures. At the same time, we will promote the exchange of RMB denominated commodity and interest rate futures products trading business.
On March 17, the China securities fund association announced the first batch of private fund managers, including 50 institutions such as wanbo brothers and junlian capital, to qualify for private fund management. The industry says it is a milestone.
In Liu Peiqiong view, should be allowed to invest in the mainland to improve Hong Kong Banks and insurance of the inter-bank bond market quota and scope, expand allowed to participate in sectors to the industry, establish fund of both cross-border recognition system as soon as possible, in order to promote the development of more yuan related financial products. Allow more qualified mainland non-financial companies and financial institutions to issuance of RMB bonds in Hong Kong, in particular the longer-dated bonds, to establish a perfect bond yield curve, boost financial and insurance institutions to launch a derivatives. It also allows mainland sovereign funds such as China investment limited and state-owned insurance companies to invest in assets such as renminbi bonds in Hong Kong to deepen the development of the offshore renminbi bond market in Hong Kong.
Liberalising Hong Kong people to exchange renminbi restrictions
Hong Kong has unique advantages and huge banking institutions, but in recent years the construction of the offshore market has been slow, while London and Singapore have become more and more powerful. According to statistics, renminbi deposits in Hong Kong have exceeded rmb1, 000bn, while the trading volume of the offshore renminbi exchange market in Hong Kong is also at an average of $20 billion a day.
Some experts have suggested that the yuan be freely convertible in Hong Kong to increase its trading and investment in the Hong Kong market. In October 2013, the Hong Kong monetary authority and the association of Banks delegation FangJing makes recommendations to the people's bank of China: based on the current offshore yuan market has been quite size and liquidity, suggested that Hong Kong residents of RMB can be flat through the offshore market, which is no longer restricted to the current cash the requirement of RMB 20000 per person per day.
"We hope that the people's bank of China will approve this proposal at an early date and relax Hong Kong residents' exchange rate restrictions as soon as possible," liu said. For convenient use and configuration of Hong Kong residents renminbi assets, and further promote the development of offshore RMB business in Hong Kong, the bank industry and citizens to increase the flexibility of the Hong Kong residents to buy and sell yuan, on the one hand, meet the demand of Hong Kong residents of yuan investment, also help to promote the development of offshore RMB investment products."
