RMB Cross-border Trade settlement

Hong Kong Enterprises will be with Shanghai and Guangzhou enterprises in renminbi as a trade settlement currency Reporter: He Liu June 29, People's Bank of China Governor Zhou Xiaochuan (former left) and Hong Kong Monetary Authority chief executive Joseph Yam at the signing ceremony of the MOU. On the same day, the mainland and Hong Kong MoU on Cross-border trade in renminbi settlement signed in Hong Kong. Xinhua News agency reporter Lu Xiaowei the governor of the People's Bank of China, Zhou Xiaochuan, and the chief executive of the Hong Kong HKMA, Mr Joseph Yam, 29th in Hong Kong to sign a supplementary memorandum of understanding on the mainland-Hong Kong cross-border trade in renminbi, allowing Hong Kong enterprises to work with Shanghai, Guangzhou, Shenzhen,　　Companies in Dongguan and Zhuhai settle their currency in renminbi as a trade exchange. Zhou Xiaochuan said at a press conference after the signing of the agreement that the State Council has approved Hong Kong to operate renminbi trade settlement business, Hong Kong can further expand the renminbi business.　　The talks have been under discussion for some time and there is no problem with the technical arrangements. He added that the MOU would further strengthen financial co-operation between the mainland and Hong Kong.　　Trade and financial exchanges between the mainland and Hong Kong will become increasingly important. Mr Yam said that after the signing of the renminbi Trade settlement agreement between the mainland and Hong Kong, details remained to be implemented, including the signing of an agreement between the People's bank, the clearing bank and the participating banks, and the publication of a list of corporate pilots. The first trade settlement is expected in July.　　He said the arrangements would include trade finance and interbank lending, as well as regulating the flow of renminbi between the mainland and Hong Kong. On the issue of the renminbi settlement Enterprise pilot, Zhou Xiaochuan said that the renminbi offshore settlement will be first piloted in hundreds of companies in the mainland.　　Mr Yam added that Hong Kong did not have a pilot list of renminbi settlements for companies, so long as it could be settled in renminbi with a pilot trade with the mainland, other foreign companies could also use Hong Kong's platform for renminbi settlement. Mr Yam also said that with the implementation of the renminbi trade business pilot, Hong Kong's renminbi business would be more diversified and would help strengthen the Hong Kong financial system's ability to deal with renminbi-denominated transactions.　　We hope that the renminbi business in Hong Kong can continue to develop, thus reflecting the policy direction of further developing the interaction, complementarity and mutual assistance between the two financial systems of the mainland and Hong Kong. The HKSAR Government welcomed the introduction of the renminbi trade settlement pilot. Hong Kong has been ready to carry out cross-border renminbi settlement, the chief executive of the HKSAR said on the same day.　　The signing of the agreement for Hong Kong to develop renminbi business "further", can increase the flexibility of business, expand the scope of local banking business, enhance the liquidity of renminbi funds, and to promote the effective operation of the renminbi settlement platform to further develop the renminbi business in Hong Kong to bring favorable conditions.　　He added that Hong Kong's long-term goal was to tie Hong Kong's development to a renminbi settlement centre outside the mainland, in line with mainland policy. The Financial Secretary, Mr John Tsang, said that trade between the mainland and Hong Kong could be settled in renminbi, not only to further enhance Hong Kong's role as a trial venue for the renminbi outside the mainland, but also to trade and economic development between the two places.has a catalytic effect.　　This is also in line with the SAR government's policy of supporting Hong Kong enterprises in coping with the international financial crisis. Mr Vincent Cheng, Asia Pacific chairman of HSBC Holdings, said on the same day that it welcomed the signing of a memorandum of understanding on Cross-border trade settlement between the mainland and Hong Kong.　　This is not only beneficial to manufacturers, but also enables Hong Kong banks to develop renminbi lending business, which is conducive to consolidating the status of Hong Kong as an international financial centre.　　The bank announced on the same day that it had become a clearing house for Cross-border renminbi settlement in Hong Kong and had been prepared to do so. Hong Kong began its renminbi business since 2004 and issued renminbi bonds in 2007, the first region outside the mainland to provide renminbi banking services. The executive meeting of the State Council, held at the end of December last year, decided to test the renminbi between Guangdong and the Yangtze River Delta region and the Hong Kong and Macao regions, Guangxi and Yunnan and ASEAN. April 8 This year, the State Council executive meeting decided in Shanghai and Guangdong province Guangzhou, Shenzhen, Zhuhai, Dongguan 4 cities to carry out cross-border trade renminbi settlement pilot.