Rising Competition In Offshore RMB Market

According to the data released by the Hongkong Monetary Authority yesterday, the RMB trade settlement through the Hongkong bank has reached 310 billion 800 million yuan in the first quarter of this year, accounting for 84% of the 369 billion 200 million yuan RMB trade settlement last year.

In addition, Hongkong has RMB deposits of 451 billion 400 million yuan, and the issuance of RMB bonds has reached RMB 18 billion 500 million yuan in the first 4 months of this year, more than half of last year's total issuance of RMB bonds 35 billion 800 million yuan.

Singapore aims to catch up with offshore RMB business

Hongkong's offshore renminbi business is developing rapidly, and Singapore is also actively preparing for it.

Singapore Exchange yesterday confirmed to the first Financial Daily reporters that the new exchange is planning to launch the RMB exchange rate futures settlement service, but there is no timetable for the launch of the service.

People in the banking sector in Hongkong believe that in order to develop renminbi business, Singapore should first lay a solid foundation, including renminbi deposits, trade settlement and

A war on the offshore RMB market without smoke has seemed to have been quietly opened up.

Singapore's recent efforts to promote renminbi business, Wu Zuodong, Singapore's state councilor, said in Beijing in April that a Chinese bank in Singapore would become the RMB clearing bank.

According to Xinhua News Agency earlier reported, ICBC and Bank of China and other banks are developing RMB business in Singapore.

In response to the "challenge", Hongkong, which has seven years' experience with the renminbi and is recognized by the offshore RMB center of the state, is also making an active effort to build a higher level.

Yesterday, a spokesman for the Hongkong Financial Market Association told our correspondent that it plans to establish offshore Hongkong this year.

On the other hand, confirmed by the above spokesman, the Hongkong Financial Market Association, after consulting with members of its banking institutions, hopes to select 10 to 20 banks to participate in the daily offshore renminbi reference rate pricing as an offshore market.

Hongkong is dominant.

Most market participants believe that at least at this stage, it is difficult for Singapore to compete with Hongkong for the role of RMB offshore market center.

At present, Hongkong's RMB products include deposits, bonds, funds, insurance, real estate trust funds and other linked notes products. The next step will be a larger and more attractive RMB investment market, including the introduction of RMB IPO and "small QFII".

But some market participants say that Singapore's strength can not be underestimated.

Liao Qun, chief economist and strategist at CITIC Bank (601998, stock bar) International China business, told the newspaper yesterday that Singapore has certain conditions in the development of infrastructure and financial products in the role of actively seeking offshore RMB market, and at the same time, it has the advantage of geography, because Singapore is the hub of ASEAN.

Ma Jun, chief economist of Greater China in Deutsche Bank, also said recently that RMB trade settlement and FDI (foreign direct investment) should be carried out in Hongkong.

Because trade relations between Hongkong and the mainland are more closely related, the new China trade is only 15% of the total volume of trade between Hongkong and the mainland, while Singapore's FDI to China is less than 10% of Hongkong's FDI to the mainland.

Ma Jun predicted that the offshore offshore market in the future will form a central and marginal offshore market structure, with a ratio of 70%~80% in Hongkong and the remaining 20%~30% in Singapore, London and New York.

"It can be said that Hongkong will be the wholesale market for offshore renminbi. Singapore, London and New York will be" retail markets ".