Expansion of HK renminbi trading likely
16-12-2008
The Governor of the People's Bank of China, Zhou Xiaochuan, say Hong Kong is likely to be allowed to expand the scope of its renminbi trading. Speaking in Hong Kong, he said a renminbi settlement system would help many businesses to mitigate risks arising from US dollar volatility. Mr Zhou said he believed the Chief Executive, Donald Tsang, would raise the issue during his three-day duty visit to Beijing, which starts tomorrow. The head of the Monetary uthority, Joseph Yam, said a renminbi settlement system would benefit both mainland and local businesses. He also expected a further liberalisation of the renminbi bond market. He said restrictions on the issuing of of bonds could be relaxed. Currently, only a handful of mainland banks are allowed to issue such bonds, with their number capped by the Central Government.
