KC: RMB deposit in Hong Kong next year or up to 2 trillion

Hong Kong's renminbi stock could reach 800 billion by the end of this year, perhaps 2 trillion next year, to support a general-scale IPO, the Secretary for Financial services and the Treasury, KC, said in a dialogue with Sina. (Photo: Sina financial Peng Lin) March 23 Morning News the Secretary for Financial services and the Treasury, KC, said in a dialogue with Sina, that the estimated renminbi deposits in Hong Kong could reach 800 billion by the end of next year and reach 2 trillion in theory, enough to support the launch of the renminbi IPO,　　But market liquidity and investor interest will also affect the process. Speaking at a forum in Hong Kong this morning with Sina Finance, KC said Hong Kong's renminbi deposits had been increasing, reaching 400 billion by the end of February, estimated at 800 billion by the end of the year and 2 trillion in 2011.　　The rapid growth of RMB deposits is the main support for the development of diversified renminbi business in the future. The Fanto, which is seen as the first renminbi IPO in Hong Kong, has failed to pass the approved listing on the planned schedule, with an analysis that the current renminbi funding in the territory may not be enough to support the development of the renminbi IPO.　　KC said the stock of Hong Kong's renminbi this year should suffice to support a general-scale IPO of the renminbi. "To see the size of the stock, generally can be supported, but the development of the market after all," KC pointed out, "the circulation of the renminbi, investor interest is also a factor."　　However, KC that the main impetus for the renminbi business to develop in Hong Kong this year will still be the increase in deposits and the diversification of the renminbi bond market.　　"With the increase in investment and market expansion, the rate of return of the renminbi in Hong Kong will continue to increase," KC said, and the government, regulators and HKEx are now exploring ways to increase the competitiveness of the Hong Kong market, including allowing more investment varieties to be traded on business trusts. In addition, KC that mainland regulators are also exploring ways to allow the renminbi to return to the mainland and open up more investment channels through foreign direct investment (FDI). (Peng Lin from Hong Kong)