Offshore RMB Is More Than A Trillion Yuan, Offshore RMB Investment Market Has Gradually Become A Climate.

The "P" trillion trillions of RMB "offshore" deposits indicate that a newly established offshore RMB investment market is taking shape.

Market participants interviewed by the Shanghai Securities Daily believe that the new measures of opening up to the outside world, such as Shanghai and Hong Kong through cross-border loans, will further open up the RMB reflux channel, which will help to enhance the breadth and depth of the offshore RMB investment market, and promote the RMB to become an increasingly important international investment currency, and will gradually become the major international reserve currency in the future.

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< p > < strong > RMB has exceeded RMB 1 trillion /strong > /p >.

In July 19, 2010, the people's Bank of China and the Hongkong monetary authority jointly announced the delivery of RMB in Hongkong. At that time, Li Xiaojia, chief executive officer of Hongkong exchange group, predicted that this is "a business opportunity of trillions of dollars".

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In less than four years, the prediction is confirmed by < p > < strong >.

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< p > the statistics released by the Hongkong monetary authority in May 30th show that as of April 2014, the RMB deposits in Hongkong increased from 104 billion yuan in 2010 July to 959 billion 900 million yuan.

Lu Weibai, President of Citigroup Hongkong and Macao, expects that by the end of this year, Hongkong's RMB deposits can exceed 10000 billion yuan.

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< p > in fact, since the start of cross-border RMB settlement in 2009, the amount of RMB settlement in cross-border trade has increased rapidly, and the willingness to use and hold RMB in international economic exchanges has also increased rapidly.

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< p > the latest data released by the central bank showed that the first quarter cross-border trade RMB settlement business occurred 1 trillion and 650 billion yuan, an increase of 60% over the same period last year.

In 2013, cross-border trade RMB settlement business totaled 4 trillion and 630 billion yuan, a sharp increase of 57% over 2012.

At the same time, more and more overseas enterprises choose to hold RMB, and a considerable part of them remain overseas.

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< p > "if we add Singapore, London and Taiwan in China, the RMB remaining overseas will have exceeded 10000 billion."

There are foreign exchange traders.

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< p > according to Liang Xinsong, assistant director of the Singapore monetary authority, as of the end of last year, RMB deposits in Singapore had reached 200 billion yuan, and the Monetary Policy Department of Taiwan in China has also announced that as of the end of March this year, the balance of RMB deposits in Taiwan area of China has reached 268 billion 392 million yuan.

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< p > < strong > the offshore RMB investment market has gradually become a climate < /strong > /p >

The increasingly large pool of RMB funds, "P", has pried up an initial investment market for offshore RMB.

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The current offshore renminbi market in Hongkong is no longer the same as that at the beginning of 2010. Not only is the RMB product system more sound, bonds, stocks, insurance (Fang Xinbao), funds and futures products are available, but also the market liquidity has risen significantly.

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The information provided by the Shanghai Securities Daily (< p > < a href= "http://www.91se91.com/news/index_cj.asp > > HKEx < /a > shows that as of April 30, 2014, there were 98 RMB denominated and traded bonds in the Hongkong exchange market, 12 RQFII exchange traded funds (ETF) priced and traded in Renminbi and Hong Kong dollars, 2 gold denominated and traded gold ETF, 1 RMB denominated and traded real estate investment trust funds, 3 RMB denominated and traded bond index ETF, 3 Renminbi derivative and trading derivative warrants, 1 Renminbi denominated trading stocks, and a futures contract that can be paid in Renminbi.

HKEx is also actively preparing to extend its RMB products to commodity futures, and will launch renminbi, copper, aluminum and zinc commodity futures contracts in the second half of this year.

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< p > > a href= "http://www.91se91.com/news/index_cj.asp" > RMB < /a > the turnover of products is also becoming more active. Some products even rank among the mainstream investment varieties of Hongkong capital market.

The A50 index ETF, which tracks the FTSE A50 index, has been launched for less than two years. The scale of the fund has exceeded 22 billion yuan and has become the fourth largest ETF product in Hongkong. Its RMB denominated portion has averaged 37 million yuan since 2014.

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< p > the RMB exchange rate futures of the Hongkong stock exchange have been increasing steadily since 2012.

In March 19th, the number of contracts for RMB currency futures in the HKEx reached a record high of 6318 (nominal amount of US $632 million).

At the same time, the number of unliquidated contracts for RMB futures increased by more than six times than that at the beginning of the launch, and 23887 new shares (nominal 2 billion 400 million U.S. dollars) were set up on 14 February.

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< p > < strong > < a > href= > http://www.91se91.com/news/index_cj.asp > > International Trade > /a > and financial market new protagonist < /strong > /p >

Less than P, the increasing number of offshore RMB pools and the continuous enrichment of investment products attract more and more foreign investors to join the ranks of RMB trading and investment.

"Offshore renminbi is no longer an emerging market currency because it achieves global pactions."

MalcolmBaker, senior director of foreign exchange and interest rate products at the Chicago Mercantile Exchange, said recently that "although 85%-90%'s offshore renminbi pactions are from Hongkong, we also see participants from Brazil, Canada, Europe and North America."

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< p > the Chicago Mercantile Exchange introduced us dollar / offshore RMB futures and E micro dollar / RMB futures in February last year.

Since April 2013, the volume of US dollar / offshore RMB foreign exchange contracts has increased significantly, and by the end of April this year, the total turnover has exceeded 1 billion 400 million US dollars and has become one of the fastest growing products.

As the Renminbi denominated products are widely welcomed by the market, the Chicago mercantile exchange is currently evaluating the introduction of US dollar / offshore RMB futures options in 2014.

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< p > Singapore monetary authority has also expressed its intention to develop a wider range of RMB investment products, especially capital market and asset management, on the basis of strong trade finance.

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< p > according to the three year foreign exchange (FX) market survey published by the bank for International Settlements in May, RMB entered the ten largest currency list in the world's foreign exchange market for the first time last year, becoming the most active currency in the ninth largest exchange.

The global bank Financial Telecommunication Association (SWIFT) monitoring report shows that the renminbi has become the seventh largest international trade payment currency with the highest utilization rate.

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< p > < strong > opening up new measures to speed up offshore market formation < /strong > < /p >

< p > the market analysts interviewed generally believe that the rapid growth of offshore RMB pool and the rapid formation of offshore RMB investment market are the result of the country's opening up and the reflux of RMB reflux.

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< p > in recent years, the state has promoted the establishment of RMB reflux mechanism from various angles.

If qualified foreign institutions are allowed to take part in the mainland interbank bond market and launch the RQFII pilot project, the offshore RMB can be invested in the mainland stock market and go to Hongkong to issue RMB bonds for six consecutive years. At the same time, enterprises continue to actively encourage enterprises to issue "dim sum debt" to Hongkong.

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In addition, P's booming financial reform and innovation also opened up a new outlet for offshore renminbi.

At present, the Shanghai Free Trade Zone, Shenzhen Qianhai, Zhuhai Hengqin and other financial innovation experimental areas have been widely launched RMB cross-border loan business, and the Shanghai Hong Kong Tong plan, which is about to start in October, also uses RMB as trading currency.

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< p > even after the appreciation of the renminbi has been appreciated unilaterally, it has not changed the overseas investors' love for Renminbi denominated products.

Wang Wei, director of the research department of the Bank of China International Bond, told reporters that recently, many overseas Chinese housing companies, such as overseas Chinese town, Biguiyuan, Longhu real estate and China real estate, successfully issued bond financing in Hong Kong, and the subscription of "dim sum debt" was significantly higher than the US dollar debt.

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< p > however, to form offshore RMB investment market, we have set higher requirements for enriching RMB investment products and RMB reflux mechanism.

Analysts said, "foreign investors holding renminbi is no longer simply to get the appreciation of the renminbi, and the demand for investment income and the demand for managing foreign exchange and interest rate risk are increasingly strong."

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< p > Li Xiaojia also believes that if offshore business is to develop in a large-scale way, there must be enough reflux, that is to say, the funds raised by Renminbi products, such as corporate bonds, stocks, futures and interest rate derivatives, should be allowed to return to the territory and gain profits from domestic businesses.

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