A &Nbsp Premium Was Issued At The Same Time As The Mainland. Strong Demand Led To The Emergence Of US Dollar Sales.

* RMB spot remittance closed, offshore premium reappearing.

* European debt crisis eases, risk appetite restarts.

* traders said that many Chinese funded institutions were selling dollars.

The spot exchange rate of offshore RMB CNH=D3 in Hongkong was higher than that of mainland CNY=CFXS on Monday after a month's discount. Risk appetite rebounded and demand for offshore renminbi increased.

At 15:49 local time, the spot spanaction price of offshore renminbi was 6.3500 yuan, and the mainland's immediate report was $6.3545, which had erased thousands of points that had reached tens of thousands of points and had recently been maintained at four hundred or five hundred points.

"The European debt crisis has stabilized for a while, so that investors' risk appetite has been reopened. And the United States has put pressure on RMB appreciation to attract investors to return to the RMB market." a senior foreign currency trader of the European bank said.

He also added that importers recently used cheap offshore renminbi for trade payment, and also supported offshore renminbi exchange rate, resulting in a narrower exchange gap between the two places.

President Obama and Chinese President Hu Jintao made a tit for tat on Saturday's APEC statement on the trade agenda. White House senior officials said that when Obama met with Hu Jintao, he urged the yuan to appreciate, and said that the American people had become increasingly impatient with the economic relationship between China and the United States.

On Sunday, the president of Italy appointed a new government of Mario Monti, the former EU executive, to undertake urgent reforms to end the crisis, easing some of the worries of investors in the short-term prospects of the euro zone debt crisis.

"The market has been short of RMB for more than a week, so a lot of US dollar sales have sprung up," said another European trader. "We see a lot of Chinese funded institutions selling dollars."

He also said that at present, the financing cost of RMB in the market is high, and the demand for RMB is strong.

The latest quoted price of offshore one year term contract CNH1Y=, which is RMB forward, has risen to 260/310, making it a historic high for over a year.

The euro and commodity currencies remained strong on Monday, encouraging investors in Europe to tackle the debt crisis. The euro was the latest EUR= to US $1.3733, rising to a high of $1.3811 in early trading.