Overseas Trillion RMB Arbitrage Impulse &Nbsp; Cross Border Reflux Central Bank Blocking Both Sides

Part of the RMB settled in cross-border trade is RMB.

However, on the other hand, the central bank's meeting in August 1st clearly put forward the RMB FDI (foreign direct investment RMB settlement business) in the pilot stage before full liberalization, and expanded the new investment channels for overseas RMB.

"The central bank does not have to completely block the return of foreign currency under capital account.

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"Overseas Renminbi Financing under corporate trade is not affected at the moment, and overseas Renminbi payment and internal guarantee loan business are normally carried out."

A person in charge of the International Business Department of a bank in Shanghai told reporters that in recent days, some business customers have been consulting their business whether they are normal, but these businesses are not currently banned.

In 2009, since the development of cross-border trade RMB settlement, more than 1 trillion of RMB has been exported to foreign countries through trade. However, only a small proportion of funds have been refunded through the export of RMB business. The use and reflux channels of RMB abroad have been attracting market attention.

It is understood that in addition to investing in Hongkong's RMB bonds, deposits and other channels, due to the existence of interest spreads at home and abroad, part of the funds through loans, indirectly in the domestic enterprises or domestic enterprises overseas platform.

For example, the overseas payment of Renminbi (domestic entity loan, overseas bank payment) and internal guarantee loan (foreign entity loan, offshore bank loan).

"All of these loans are under trade. It is difficult for funds to enter the accounts of domestic enterprises. The import payment business is directly paid to overseas exporters. If the funds for foreign loans are to enter the domestic parent company, it is also necessary to provide customs customs checklists for inspection.

"Introduction of the international business department.

Therefore, the central bank is responsible for this part.

However, some of the borrowing behaviors under the capital account are quite different from those of the central bank.

The source said that before the domestic enterprises borrowed from overseas banks, overseas parent companies and enterprises with no equity relations, they were included in the management of foreign debt quotas. The foreign debts of foreign currencies need to be reported to the safe for examination and approval. At present, the external debt of the renminbi is double headed management, which requires the approval of the safe and the people's Bank of China at the same time.

But this kind of loan business of RMB has not been clear whether it is included in the foreign debt. Therefore, many banks are going to scratch the ball and will borrow foreign banks' business as a non foreign debt business.

"Borrowing from shareholders and enterprises is restricted by the difference in betting among foreign invested enterprises, while borrowing from overseas banks is generally used for the purpose of floating capital. Unlike the business under the trade, capital use is regulated and arbitrage is easy to happen."

The international business believes that in particular, if the inflow of arbitrage funds accelerates, it will have a greater impact on the domestic monetary policy.

In June this year, the new Renminbi deposit in Hongkong suddenly dropped to 1/10 at the beginning of the year, which was related to the influx of large quantities of RMB into the territory.

Blocking and sparse parallel

In addition to under the terms of trade and capital, offshore renminbi lending to domestic banks is also blocked by inflow of RMB capital.

At the end of last year, the central bank issued a document allowing some overseas institutions to participate in cross-border businesses to invest in the domestic bond market. After that, the FDI of the renminbi was also tested. In addition, loans to overseas parent companies and enterprises without equity relations can be carried out normally after examination and approval.

Li Jianjun believes that under the trade and capital terms, the issue of outflow and inflow is fully liberalized under the terms of trade. However, there has always been a problem of outflow and inflow. Under the capital account, the central bank should support the flow of capital and the real background business and refuse arbitrage from the central bank's measures.

At present, some scholars have pointed out that two years after the pilot, the cross-border business of RMB needs to be reexamined in the field of trade and capital flow and outflow and inflow.

For example, in addition to trade flows, the central bank also encourages direct investment in Renminbi and RMB financing in overseas projects.

"On the issue of inflow, the internationalization of the RMB is of course hope that the RMB will be pferred abroad, but not back to the territory of the country, but the territory must be prepared for the investment channel to make the market choose, and there is a place to come in."

Li Jianjun told reporters that the central bank liberalized FDI and other businesses, which is worth affirming.

However, the return arbitrage of RMB is indeed causing great concern in the market.

For example, many enterprises in Zhejiang will pfer loans from foreign countries to other enterprises this year. In addition, non US dollar arbitrage funds will enter the lending market.

A private placement mainly introduced the high net worth population in the United States to invest in real estate in the United States, and introduced us dollar funds into domestic investment. She said that some lending investments in the non housing market have indeed become the focus of attention recently, and interest rates have also changed greatly.