Web Exclusive

PBOC studies Shanghai renminbi off-shore market

By Zhao Tingting (chinadaily.com.cn)
Updated: 2010-03-30 17:38
Large Medium Small

The People's Bank of China (PBOC) is studying whether to set up a renminbi off-shore market in Shanghai, China Business News reported Tuesday, citing a senior official.

Related readings:
PBOC studies Shanghai renminbi off-shore market Yuan forwards strengthen
PBOC studies Shanghai renminbi off-shore market China to crack down on illegal foreign money 
PBOC studies Shanghai renminbi off-shore market Regulator plays down hot money fears
PBOC studies Shanghai renminbi off-shore market Hot money flow peaks in December
PBOC studies Shanghai renminbi off-shore market NDRC official rings 'hot money' alarm

Trading in yuan is now allowed under the condition that China's capital projects are not fully convertible, said central bank vice governor Su Ning. This means renminbi on overseas markets cannot get access to the domestic capital market. Under such circumstances, outflowing renminbi can be traded on the overseas renminbi off-shore market.

"So the PBOC supports and encourages the establishment of renminbi off-shore market in Hong Kong and also studies the possibility to set up a renminbi off-shore market in Shanghai", said Su.

The market will enable yuan-settlement foreign companies to finance and trade on the market, which will boost yuan trade clearing development, Su said.
Specials
Columnists
China Daily E-paper