HK to offer RMB services to foreign banks

Hong Kong is ready to provide reminbi services to overseas financial institutions at a wholesale level, said John Tsang Chun-wah, the financial secretary of Hong Kong.

Tsang said in his speech for the 2014-2015 budget that the special administrative region will strengthen existing services, such as renminbi trade financing and products, asset management and fund development.

Banks in Hong Kong started to launch renminbi deposit-taking, currency exchange and remittance services for customers in 2004.

Hong Kong is now the world's largest offshore renminbi business center. By the end of 2013, the total renminbi deposits and outstanding renminbi certificates of deposits reached more than 1 trillion yuan ($163 billion), accounting for 70 percent of the offshore pool.

Renminbi trade settlement conducted through Hong Kong banks last year exceeded 3.8 billion yuan, up by 45 percent year on year.

In the past few years, renminbi transactions between local and overseas banks have increased substantially.

The amounts due to and from overseas banks have each increased significantly by more than eight times, from less than 20 billion yuan at year-end of 2010, to about 160 billion yuan for 2013.

The city has reached consensus with the Securities and Futures Commission and relevant authorities on the mainland on mutual fund recognition.

Tsang said that the arrangement will further promote the diversification of fund products in both sides.

He added that Hong Kong will also introduce an open-ended fund company structure, to attract more funds. The relevant regulatory framework has been drawn up and consultations on it will begin next month.