Beijing is "closing the circle for the global circulation of China's currency," HSBC says
China pushed for greater international use of the yuan Wednesday by promising to let foreign investors buy mainland shares and bonds, pushing up shares of brokerage stocks listed in Hong Kong.
The plans, among a string of others unveiled by China Vice Premier Li Keqiang, underscored Beijing's intent to propel explosive growth in the Hong Kong offshore yuan market and turn the yuan, or renminbi, into a widely-traded currency one day.
In a sign of Beijing's patent currency ambitions, it also concluded the biggest-ever offshore yuan bond deal on Wednesday in Hong Kong, which Li made clear would remain the paramount center for cultivating a yuan market outside China.
"Hong Kong can make good use of the opportunities in the yuan's growing importance...to further enhance its status as an international financial center," Li said at a launch of the record-sized yuan bond that was attended by other Chinese officials including Central Bank Governor Zhou Xiaochuan. ...
"Not only is Beijing still comfortable with the rapid pace of offshore yuan market development, it is taking the yuan internationalization process to the next stage," HSBC said.
"By opening up a significant channel for yuan inflows back to onshore asset markets, (it is) closing the circle for the global circulation of China's currency," the bank said.
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