Li Keqiang: The Scope Of Cross-Border RMB Settlement Extends To The Whole Country.

Standing Committee of the Political Bureau of the CPC Central Committee and vice premier of the State Council

Support for Hongkong to use direct investment in Renminbi

Li Keqiang said that Hongkong has natural advantages in developing offshore RMB business. The central government will actively support the development of Hongkong's RMB market, expand the circulation of RMB funds in Hongkong and the mainland, and support Hongkong's development as an offshore RMB center.

Specific measures include extending the scope of cross-border RMB settlement to the whole country, supporting Hongkong to use RMB in direct investment in the territory, and allowing the qualified investors outside the RMB to invest in the domestic securities market (R Q FII), with a starting amount of 20 billion yuan.

The central government will also increase the domestic financial institutions in Hongkong issuing RMB bonds, allowing domestic enterprises to issue Renminbi bonds in Hongkong, and expand the scale of domestic bonds issued by domestic institutions in Hongkong.

The central government's issuance of RMB bonds in Hongkong will serve as a long-term institutional arrangement to gradually expand the scale of issuance.

20 billion yuan RMB bonds issued in Hong Kong

Yesterday, the Ministry of Finance issued 20 billion yuan in Hongkong treasury bonds, Li Keqiang attended the ceremony and launched the issue.

This is the third time since September 2009 that the Ministry of Finance issued RMB bonds in Hongkong for the first time in two years.

Data show that since June 2007, the people's Bank of China allowed mainland financial institutions to issue RMB bonds in Hong Kong, by July 31st this year, about 60 issuers had issued RMB bonds in Hong Kong, and the total value of bonds was about 123 billion yuan.

Xinhua

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Memorabilia for offshore RMB business in Hongkong

In the past 20 years, it has not been allowed to circulate outside the mainland, and has gradually entered the peripheral economies. In recent years, it has become a trade settlement currency and even an investment currency. With the opening up of the mainland and rapid economic development, the RMB has been moving towards internationalization.

For the first time in March 1993, the mainland allowed individual tourists to carry more than 6000 yuan each time for entry and exit. The Hongkong market began to circulate RMB.

Previously, the renminbi has not been allowed to circulate outside the mainland.

In November 2003, the central bank announced that it had agreed to handle four types of personal RMB business such as deposit, exchange, remittance and bank card in Hongkong.

Bank of China (2.98, -0.01, -0.33%) (Hongkong) was appointed Hongkong renminbi business.

In February 2004, the Bank of Hongkong officially opened renminbi business.

In June 2007, the central bank allowed mainland financial institutions to issue Renminbi bonds in Hongkong.

Over the past 4 years, the main body of issuing bonds has expanded from mainland financial institutions to ordinary enterprises and international financial institutions.

In June 2009, the central bank and the Hongkong Monetary Authority signed a supplementary memorandum of understanding on the RMB settlement business of cross-border trade between the mainland and Hongkong, allowing Hongkong enterprises to use Renminbi as trade settlement currency with Shanghai, Guangzhou, Shenzhen, Dongguan and Zhuhai.

Hongkong has become the only overseas pilot area for cross-border trade RMB settlement.

In September 2009, the Ministry of Finance issued the first 6 billion yuan treasury bonds in Hongkong.

This is the first time that China's treasury bonds have been issued outside the mainland. It is also the first time to issue Renminbi denominated sovereign bonds outside the mainland.

In June 2010, the pilot area for cross border trade RMB settlement was extended to 20 provinces and municipalities, and the pilot business scope includes cross-border trade in goods, service trade and other current account RMB settlement.

The overseas territories involved in cross border trade settlement of RMB will no longer be restricted.

In July 2010, the central bank signed a new settlement agreement with Bank of China Hongkong, allowing RMB deposits to be pferred between banks in Hongkong.

In August 2010, the central bank announced that a number of overseas financial institutions in Hongkong would be allowed to pilot investment in the mainland interbank bond market, thereby widening the investment channels for overseas RMB.

In November 2010, the Ministry of Finance issued RMB bonds in Hongkong for the second time, totaling 8 billion yuan, of which 5 billion yuan was for institutional investors and 3 billion yuan for individual investors.

In January 2011, the central bank announced the launch of a pilot scheme for RMB direct investment overseas, and allowed domestic enterprises to invest overseas in Renminbi.

The mainland bank's Hongkong branch or agent bank can also obtain RMB funds from the mainland and issue Renminbi loans to the enterprises that are investing.

Huixian Industrial Trust was listed on the Hongkong stock exchange in April 29, 2011.

This is the first stock in Renminbi denominated in Hongkong. It is also the first IPO to be used outside the mainland.

Xinhua

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Li Keqiang's Hong Kong stock exchange received a red vest.

According to the vice premier of the State Council, Vice Premier Li Keqiang, on the 17 day, accompanied by chief executive Donald Tsang of the Hongkong Special Administrative Region, visited the Hongkong stock exchange, he was awarded a red trader vest with a serial number of 6632.

The head of the HKMA media said that the leaders will get a red vest to the HKEx. The vest numbers are mainly based on lucky numbers in Chinese traditional culture. Among them, 8, 3 and 6 three figures appear the highest frequency.

It is reported that Hu Jintao, Wen Jiabao and Jia Qinglin were awarded 8383, 6638 and 6688 vests in the past when they visited the HKEx.

Yuan Weiji, Professor of economics and finance at Shue Yan University in Hongkong, told the China News Service reporter that Hongkong is a recognized financial centre in the region. The HKEx is a leading trading platform in Asia. Vice Premier Li's visit to the HKEx has a profound symbolic significance. It highlights the central support of Hongkong as an international financial centre and plays a leading role.

Hong Kong stocks closed at 20402 points on the morning of 17, up 190 points, and the main board turnover was HK $32 billion 400 million.

Li Keqiang visited the Hong Kong stock exchange. Yuan Weiji thought it was helping Hongkong to "cheer up". Under the Asian slump, Hongkong opened up the market, which is the "cheer" brought by Vice Premier Li.