Showcasing Hong Kong as Offshore Renminbi Business Centre in South America

Press Releases

27 Apr 2012

Showcasing Hong Kong as Offshore Renminbi Business Centre in South America

Mr Norman Chan, Chief Executive of the Hong Kong Monetary Authority (HKMA), led a roadshow this week in South America to promote the one-stop offshore RMB financial platform offered by Hong Kong. 

Speaking at the events in Brazil, Mr Chan said, “Trade between Brazil and China has expanded phenomenally in the past decade.  Brazil’s exports to China increased from US$2.3 billion in 2001 by 22 times to US$52.6 billion in 2011, while its imports from China increased from US$1.9 billion by 17 times to US$33.8 billion.  Since 2009, China has overtaken the US as Brazil’s largest trading partner.  Bilateral trade and investment links between Brazil and China are expected to strengthen in the years ahead, and the use of RMB will open up more business opportunities for companies in both countries.”

Mr Chan also said, “Hong Kong has long been the hub for trade between China and other parts of the world, intermediating some 30% of China’s external trade in 2011.  At the same time, Hong Kong is also the gateway for China’s inward and outward direct investments, accounting for some 60% of the flows in both directions.  Against this backdrop, in the process of RMB’s internationalisation, Hong Kong has developed into the most comprehensive and competitive platform for offshore RMB business.  Apart from providing a full range of RMB banking services including trade settlement and financing, Hong Kong has the largest pool of offshore RMB liquidity, and has become the global hub for RMB dim-sum bonds with issuance totalling RMB 108 billion yuan in 2011.  In order to better serve financial institutions and corporates from different parts of the world, the operating hours of the RMB Real Time Gross Settlement system in Hong Kong will be extended to 11:30 pm (12:30pm Brazilian time), and thereby allowing Brazil to use the Hong Kong platform for settling RMB transations during the morning hours in its time zone.”

There were altogether five roadshow events co-organised with the Bank of America Merrill Lynch, HSBC and Banco Santander respectively in Brazil, which were attended by participants from banks, fund managers, corporates and government agencies.

Chile was the other stop of the roadshow, where its trade with China increased by 12 times to US$32 billion from 2001 to 2011.  The HKMA co-organised with Banco de Chile, BBVA and Banco Santander three roadshow events there, which were participated by the largest importers and exporters in Chile apart from financial institutions and government agencies.

Note:

  1. This round of roadshows in South America is the fifth in a series of roadshows conducted by the HKMA, and was attended by about 500 participants from banks, fund managers, corporates and government agencies.  The HKMA conducted roadshows in Australia, Russia, UK and Spain in 2011.
  2. Key statistics of offshore RMB business in Hong Kong:

 

 

 

 

 

End-March 2012

End-2011

 

Customer deposits

554.3

588.5

 

Outstanding amount of certificates of deposit issued 

118.1

73.1

 

Total

672.4

661.6

 

 

 

 

 

 

 

 

 

 

March 2012

Q1 2012

2011

RMB trade settlement handled by banks

227.3

571.2

1,914.9

 

 

 

 

 

 

 

 

 

2012* 

2011

 

RMB bond issuance

34.2

107.9

 

 

 

 

 

 

 

 

 

 

End-March 2012

End-2011

 

No. of banks participating in RMB clearing platform

194

187

 

No. of correspondent banking accounts maintained by overseas banks with banks in Hong Kong

 

1,104

 

968

 

Amount due to overseas banks

128.5

116.4

 

Amount due from overseas banks

146.1

121.7

 

 

 

 

 

RMB billion (unless otherwise stated); * From January to mid-April 2012. 

 

Hong Kong Monetary Authority
27 April 2012

 

Photo 1

Mr Norman Chan, Chief Executive of the Hong Kong Monetary Authority speaks at the seminar in Sao Paulo, Brazil to promote the comprehensive, one-stop renminbi services offered by Hong Kong as the offshore renminbi business centre.

Photo 2

Mr Norman Chan discusses with panelists the advantages of using Hong Kong RMB platform.  Panelists comprising from left to right, Mr Juan P Cuevas, Head of Global Treasury Solutions, Latin America and the Caribbean, Bank of America Merrill Lynch; Mr Ivo Distelbrink, Head of Global Treasury Solutions, Asia Pacific, Bank of America Merrill Lynch; and Mr David Beker, Chief Brazil Economist and Fixed Income Strategist, Bank of America Merrill Lynch.

Photo 3

Mr Norman Chan speaks at a luncheon seminar in Sao Paulo, Brazil about the use of renminbi representing a new era which allows companies in different parts of the world to foster stronger trade and investment links with China.  Also joining the seminar are Mr André Brandão, President and CEO of HSBC Bank Brazil S.A.- Banco Múltiplo; Mr Aldo Mendes, Deputy Governor of Central Bank of Brazil; Ms Anita Fung, CEO of HSBC Hong Kong; and Ms Katia Bouazza, Managing Director and Co-Head Global Capital Markets, Americas of HSBC Securities (USA) Inc.  (from left to right).

Photo 4

Mr Norman Chan hosts a breakfast seminar in Santiago, Chile.  Chile’s trade with China increased by 12 times to US$32 billion from 2001 to 2011.  Mr Vittorio Corbo, Board Member of Banco Santander, S.A. in Madrid and Chile (right) also attends the seminar.

Photo 5

This round of roadshows in South America is the fifth in a series of roadshows conducted by the HKMA, and was attended by about 500 participants from banks, fund managers, corporates and government agencies.

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Last revision date : 30 April 2012