Hong Kong promotes renminbi business in Japan

The Hong Kong Monetary Authority and Trade Development Council have held a seminar in Tokyo promoting Hong Kong’s renminbi business.

Monetary Authority Chief Executive Norman Chan said China has experienced phenomenal economic growth and is playing an increasingly important role in intra-regional trade in Asia. Hong Kong is now Japan’s largest trading partner.

"The growing trade links between China and Japan present a strong business case for the use of renminbi in enhancing the efficiency of these activities."

Chan said the internationalisation of the renminbi involves linking of the onshore and offshore renminbi markets through trade settlement, direct investment and portfolio investment.

"The renminbi trade settlement scheme has largely been liberalised and this bridge is the widest, while arrangements for the use of renminbi for inward and outward direct investments are in place already. The bridge for portfolio investment in renminbi is also being built progressively."

Chan said demand for offshore renminbi financial services and products will increase rapidly and offshore renminbi business will be developed in different parts of the world.

He said Hong Kong represents a comprehensive one-stop platform that can facilitate Japanese companies and banks in their of conduct various kinds of offshore renminbi business.

"We are glad to see there are 13 Japanese banks participating in Hong Kong’s renminbi clearing platform and six Japanese companies having issued over US$475 million in dim-sum bonds in Hong Kong."

The seminar was the sixth in a series of overseas roadshows conducted by the authority. It was part of the Think Global, Think Hong Kong promotion programme organised by the Trade Development Council in Japan.

More than 200 representatives from Japan's financial sector and government agencies attended.