CNH Market--A Burgeoning Offshore RMB （CNH市场一个新兴离岸人民币）.pdfVIP

CNH Market--A Burgeoning Offshore RMB Market Liu Chenggang from Bank of China September, 2011 ContentsContents I. Evolution of CNH Market IIII. IInttrodductition off CNHCNH MMarkkett III.III. FutureFuture DevelopmentDevelopment ofof CNHCNH MarketMarket IV. Bank of China’s Participation in CNH Market I. Evolution of CNH Market EvolutionEvolution ofof CNHCNH MarketMarket International trade volume of China exceeded USD3,000 billion in the year of 2010. The world’s largest trade balance surplus paved the way for thethe expansionexpansion ofof CNYCNY settlementsettlement inin crosscross-borderborder tradetrade andand directdirect investment. As the CNY offshore deliverable market, Hong Kong provides services such as international trade settlement in CNY, financing, CNY- denominateddenominated bondbond issuanceissuance andand wealthwealth managementmanagement. EvolutionEvolution ofof CNHCNH MarketMarket 1. Retail CNY Banking Businesses ： In December of the year of 2003, retail CNY banking businesses was permitted in Hong Kong, but only in CNY deposit accounts, CNY remittance and CNY credit card. And the amount for converting HKD to CNY limited to CNY20,000CNY20,000 perper dayday. 2. Dim Sum Bond Market ： On June 8th, 2007, Peopple’s Bank of China ((PBOC)) and National Development and Reform Commission (NDRC) jointly issued The Interim Measures for the Administration of the Issuance of RMB Bonds in Hong Kong Special Administrative Region by Financial Institutions Within the TerritoryTerritory ofof ChinaChina 》》((中国人民银行中国人民银行国家发展和改革委员会公告国家发展和改革委员会公告 【】 第12号). In July of 2007, China Development Bank became the first issuer in CNY-denominated bond, with a amount of RMB5 billion and a tenor of 2 years.