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FOREIGN EXCHANGE | Cesar Tordesillas, Hong Kong

Hong Kong hails new RMB rules

The promulgation of the Notice on Cross-border Renminbi Foreign Direct Investment by the Ministry of Commerce, and the Renminbi Foreign Direct Investment Settlement Rules by the People's Bank of China has been welcomed by Hong Kong.


Financial Secretary John Tsang  hailed the move today, saying: "It provides transparency and certainty for the related procedures in making foreign direct investments in renminbi.”
The rules will lower the risk of currency exchange for Hong Kong enterprises in making investments on the Mainland and significantly increase the demand of Hong Kong and international enterprises for renminbi financing.
Enterprises can make use of the renminbi fund-raising platform in Hong Kong by financing direct investments on the Mainland through banks, debt and equity.
The implementation of the measure not only supports the development of the Mainland's real economy, but also provides more investment channels for the growing pool of renminbi funds in Hong Kong.
Mr Tsang said this will further promote the development of the renminbi bond and securities markets, expediting the development of Hong Kong's offshore renminbi business.
The Hong Kong Monetary Authority also welcomes the promulgation of the administrative rules for conducting foreign direct investments in renminbi.
Monetary Authority Chief Executive Norman Chan said it will greatly expand the use of renminbi funds in Hong Kong and promote the development of the renminbi bond market and financing activities in Hong Kong, enabling the development of the Hong Kong offshore renminbi business centre to reach a new level.

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