Hong Kong eyes more ASEAN, Middle East presence in offshore renminbi market

HONG KONG, Sept. 4 (Xinhua) -- Head of the Hong Kong Monetary Authority(HKMA) said Monday that the regulator is working with banks to promote more participation from Association of Southeast Asian Nations (ASEAN) and the Middle East in Hong Kong's offshore renminbi (RMB) market.

Chief Executive of the HKMA Eddie Yue said an increasing number of economies, including those in the Middle East and the ASEAN, want to use the RMB to settle their trade with China.

In a speech at the Treasury Markets Summit 2023 jointly organized by the HKMA and the Hong Kong Treasury Markets Association (TMA), Yue said Hong Kong's edge as the leading offshore RMB business hub is not just a matter of its mutual market access with the mainland.

In fact, Hong Kong has the largest offshore RMB liquidity pool, occupies the top position for global RMB payments, and has a mature RMB business ecosystem which has been enhanced over the years, he added.

To meet growing RMB business demand, the HKMA will continue its efforts in enhancing RMB liquidity, product and infrastructure in our offshore RMB market, he said.

Looking ahead, the long-term economic growth and capital account opening process of China would continue to provide impetus to further advancements of offshore RMB business, according to Yue.

He noted the TMA has recently formed a working group of experienced RMB specialists from banks in Hong Kong to gather views on offshore RMB market development.