Luncheon seminar on the use of renminbi in trade and investment held in Russia

The Hong Kong Monetary Authority (HKMA) and China Development Bank (CDB) jointly organised a luncheon seminar entitled “Use of Renminbi in Cross-Border Trade and Investment – A New Era” today (Wednesday) in Moscow. Mr Norman Chan, Chief Executive of the HKMA, and Mr Di Weiping, Chief Investment Officer and Chief Executive of Hong Kong Branch of CDB, delivered keynote remarks at the seminar. Other speakers and panellists included Mr Sergey Storchak, Deputy Finance Minister of the Russian Federation, and Mr Sergey Lykov, Deputy Chairman of Vnesheconombank. The event attracted over 120 participants from government agencies, banks and companies in Russia and Eastern Europe.

Speaking at the seminar, Mr Norman Chan, said, “As emerging market economies are playing an increasingly important role in the world’s financial and economic developments, the greater use of domestic currencies in cross-border transactions is a continuing trend in the future. I expect that China’s trade and investment links with Russia and other emerging market economies will continue to grow rapidly in times ahead, and the use of renminbi in these cross-border transactions will also expand. This will help reduce currency conversion costs and exchange rate risks and enhance China’s economic links with Russia and other emerging market economies, while providing increased convenience and business opportunities for enterprises and financial institutions.

Mr Norman Chan also said, “Hong Kong has established a reliable and highly efficient renminbi financial platform and the largest offshore renminbi liquidity pool. It is also a global hub for renminbi trade settlement, banking services and bond issuance, which is capable of supporting the development of offshore renminbi business in different parts of the world and meeting the demand of financial institutions and enterprises in respect of renminbi settlement, financing and investment. Today’s event serves to help financial institutions and business enterprises in Russia and Eastern Europe better understand the benefits and business opportunities offered by the use of renminbi in cross-border trade and investment and the comprehensive one-stop services provided by the Hong Kong offshore renminbi centre.”

Mr Di Weiping said, “As China’s largest bank in cooperative foreign financing and investment, CDB has been working closely with authorities in the Mainland and Hong Kong and acting as a pioneer in promoting the use of renminbi in cross-border transactions. These efforts include: three issuances of renminbi bonds in Hong Kong, totalling RMB13 billion yuan, promoting financial intermediation between the capital markets in Hong Kong and the Mainland and the development of the Hong Kong offshore renminbi market; provision of a RMB70 billion yuan loan facility to Venezuela; signing of an agreement among relevant financial institutions in Brazil, Russia, India and China on pursuing cooperation in lending in domestic currencies. At present, CDB’s lending in Russia amounted to US$28.4 billion, and will seek to further cooperation with Russia in respect of business in domestic currencies.”

A booklet introducing renminbi business in Hong Kong is available here.

Hong Kong Monetary Authority
China Development Bank
15 June 2011