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| No.1 February, 2011 |
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Hong Kong welcomes pilot scheme for settlement of overseas direct investments in RMB |
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 The Hong Kong Monetary Authority (HKMA) welcomed the announcement by the People's Bank of China (January 13) of a pilot scheme for the settlement of overseas direct investments in Renminbi (RMB).
Under the Pilot Scheme, subject to approval by the relevant Mainland authorities, Mainland enterprises can conduct direct investments overseas using RMB. Moreover, Hong Kong branches and correspondent banks of Mainland banks can obtain RMB funds from the Mainland, and extend RMB lending to the enterprises making the investments.
Hong Kong has long been the prominent platform for Mainland's outward direct investments. In 2008 and 2009, Mainland's outward direct investments amounted to US$55.9 billion and US$56.5 billion respectively, of which 69% (or US$38.6 billion) and 63% (or US$35.6 billion) was invested in Hong Kong or through Hong Kong to other parts of the world.
Once the pilot scheme is implemented, Mainland enterprises can conduct investments through Hong Kong's offshore RMB centre and make use of the multi-currency and multi-functional financial platform in Hong Kong for related financing and fund management activities.
The Chief Executive of the HKMA, Mr Norman Chan, said, "The launch of the pilot scheme for the settlement of overseas direct investments in RMB will further enhance the circulation of RMB funds for trade and investment activities. This will be conducive to the development of Hong Kong's offshore RMB market, particularly in supporting real economic activities conducted in RMB and thereby playing an active role in the greater use of RMB outside the Mainland."
Hong Kong Monetary Authority: www.info.gov.hk/hkma |
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