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CE welcomes RMB settlement pilot plan |
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Chief Executive Donald Tsang has welcomed a new pilot programme that will allow Hong Kong businesses to use renminbi for cross-border trade settlements in Shanghai and four Guangdong cities.
In welcoming the State Council's decision to approve the pilot programme, Mr Tsang said the move would facilitate Hong Kong as a regional renminbi clearing centre and further underpin the city's position as an international financial hub.
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The scheme will see Hong Kong enterprises using renminbi to conduct business transactions via the banking system with mainland companies across three categories: import, export and re-export of goods. |
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Manage flexibly, reduce risks |
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Speaking to reporters in Hong Kong on April 9, Mr Tsang said one of the scheme’s overriding benefits was giving business greater flexibility to manage risks from fluctuations in exchange rates. |
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"We, in Hong Kong, have completed the necessary technical preparations for becoming the first place outside the Mainland to benefit from the scheme," Mr Tsang said. |
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"The initiative will bring about new business for the banking sector in Hong Kong. |
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"The banks are set to provide Hong Kong enterprises with renminbi services over a wide range. That means the banks can expand extensively their renminbi services from individual clients to enterprises." |
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The scheme will also enhance the diversity of renminbi assets in the Hong Kong banking system, increase the local capital liquidity of renminbi, and bolster the renminbi clearing platform in Hong Kong. |
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