Cross – border RMB business
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With the Shanghai business of foreign-funded enterprises on the “Hong Kong Financial News Agency,” said the mainland cross-border settlement of RMB large-scale, initial or value of the Shanghai FTA start to bring new investment opportunities, and thus rush into the outside of RMB Investment in the Mainland; However, after the 811 exchange rate reform last year, the RMB exchange rate reversal, devaluation is expected to heat up, companies need to redeploy the distribution of assets, the yuan transferred to overseas investment, will lead to a large number of cross-border RMB settlement needs.
In addition, the normal trade in the past mainly in US dollars as a settlement, now using the RMB settlement is also increasing. There is also a trade effect of the number of funds, the same funds can be carried out within a year many short-term trade settlement, the actual use of funds and trade there will be gaps. And cross-border renminbi financing is also increasing, he explained as a foreign business in the Mainland, to deal with exchange rate risk, in the face of devaluation expectations, enterprises in the past by the Hong Kong dollar, the dollar business in the Mainland, and now also by the renminbi, Exchange risk, this is the normal practice of enterprise risk management.
Mizuho Securities chief economist in Asia, said Shen Jianguang, the yuan will just be included in the SDR, as the world’s five major reserve currency, the renminbi in the global status of a substantial increase in the Chinese enterprises are increasingly willing to trade as a currency, investment settlement currency. On the other hand, in recent years, because of the fear of capital outflows, the government has had an impact on the RMB exchange rate. Therefore, the control of offshore renminbi and the decline in the pool of RMB funds abroad are also underway.
For the Shanghai cross-border RMB business scale with Hong Kong has been similar. He believes that Hong Kong as the earliest offshore offshore RMB center, has its first-mover advantage; and Shanghai FTA is the territory of the offshore market. However, he believes that the free trade area in Shanghai account penetration, the pace of development is not as fast as expected, FTA accounts are still managed, Hong Kong’s influence is greater. In addition, due to Shanghai as China, especially in East China’s major export base, the national trade volume increased by the Shanghai trade settlement will also increase the amount of RMB; South China is more use of Hong Kong’s cross-border trade settlement services. He is more concerned about the inflow and outflow of capital financing, Hong Kong still has its advantages in this respect, Hong Kong’s financial markets outside the integration of a higher degree.
Shen Jianguang believes that with the further opening of China’s capital, Shanghai and Hong Kong will have more room for mutual cooperation. China’s financial shanghai escorts market opening up and international integration to enhance the benefits to both sides. China’s capital account opening rate, depending on the pace of US interest rates, the dollar trend, which will affect the stability of the RMB exchange rate, the Chinese government to ensure the stability of the exchange rate, short-term restrictions on capital mobility; Interest rates, the RMB exchange rate will be conducive to stability, the pace of opening is expected to accelerate.