Lion City poised for growth in renminbi offshore settlement

Singapore is now the second largest offshore renminbi center after Hong Kong, and still has huge potential for growth in the cross-border renminbi business, according to Stephen Kiang Wah Lee, executive director of global trade product management at DBS Bank Ltd.

"As a global commercial trading hub, the Asian headquarters for corporations from around the world, and a commodity trading and a financial center, Singapore has a ready pool of participants who can potentially tap into the renminbi as a trade settlement and trading currency," said Lee.

He expects trade settlement in offshore renminbi to pick up rapidly, as renminbi-denominated trade rises in tandem with increased trade flows between China and ASEAN, which are predicted to surpass $500 billion within two years.