Norman: RMB internationalization should be set up backflow mechanism

Note: Norman, President of Hong Kong Monetary Authority, said: "The internationalization of the renminbi must set up a backflow mechanism." (Source: Sina Finance Xiao Ying) January 18 afternoon News The Hong Kong Monetary Authority, Norman, said at the forum today that the renminbi must be internationalized to establish a backflow mechanism, if the renminbi only outflow but not return, the trend of internationalization will be difficult to sustain.　　He also said that Shanghai and Hong Kong are the RMB onshore and offshore market respectively, which is a mutually beneficial relationship. Speaking at the Asian Financial Forum this morning, Norman said that the renminbi must be internationalized to set up a backflow mechanism, so as to establish a virtuous circle, if the renminbi "went out" and did not "come back", the trend of internationalization will be unsustainable.　　And in the process of internationalization, there will inevitably be an offshore market, Hong Kong has an advantage in this respect, the renminbi offshore market in Hong Kong is also developing well. Fang Xinghai, Director-General of Shanghai Financial office, said yesterday in the forum that "the success of Hong Kong in implementing the trade objectives of the offshore renminbi depends on how much and how quickly Shanghai can become the renminbi trading centre on the shore." "In this respect, Norman said that at present, the mainland's large scale of capital, banking institutions assets of more than 90 trillion yuan, such a large asset financing and management must be based on the Bank of the financial center."　　The relationship between Hong Kong and Shanghai is the offshore and onshore market of RMB, which is closely related to each other and is complementary and mutually beneficial.　　On the pilot of RMB settlement of overseas Direct Investment (ODI) launched by the People's Bank, Norman pointed out that as Hong Kong has the advantage of low capital cost, the renminbi funds invested overseas by mainland enterprises may return to Hong Kong's offshore market in the future, which will be beneficial to Hong Kong's long-term development as an offshore renminbi market.　　He said Hong Kong's renminbi deposits had risen from 280 billion to 300 billion at the end of November last year, but the yuan in the two-tier market still lacked liquidity and could affect the pricing of renminbi IPOs, which would face greater constraints on renminbi-denominated IPOs. On the issue of the SFC is about to launch a small QFII pilot, Norman said that the SFC chairman Shang Fulin yesterday in his speech, said that the CSRC supports the small qfii, he himself also hope that the small qfii can be launched as soon as possible. (Xiao Ying from Hong Kong)