HK will remain the dominant offshore RMB centre for now: HSBC

This amidst possible establishment of Singapore as a second offshore RMB trading hub.

HSBC said, "Hong Kong will likely remain the dominant offshore RMB centre for some time, given its head start, as well as its concentration of offshore entities of mainland corporates and institutions, which have driven much of the growth of the market so far.”

The bank said expansion of the offshore RMB system will keep the growth of the market rapid, in terms of crossborder RMB trade settlement, deposit base growth, market liquidity, and products.

“That the Chinese authorities are moving ahead with expansion of the offshore RMB market beyond Hong Kong suggests a relatively high level of comfort with developments so far, and an intention to internationalize the RMB in a relatively short timeframe,” noted HSBC.