RMB Account In FTA Should Be Loosed Again.

It is unfair to see the RMB accounts and cross-border capital pools in the free trade area and deal with the RMB as a demand deposit.

One sidedly thinks that the "RMB foreign debt fund" will be used as a "bottom up" phenomenon in the securities market, which is an excessive worry.

Simplifying non resident Renminbi multi accounts, so that multinational enterprises can integrate the total domestic accounts and the people's international accounts in the centralized accounts receipts.

The FTA for different identities of multiple accounts [regional accounts: FTA, FTN), and the original (foreign institutional settlement NRA and 4 banks holding offshore OSA account)] all involve "cross border two-way RMB pool business".

However, the renminbi in these accounts is treated as demand deposits, which is known as "increasing the cost of arbitrage funds".

That is to say, enterprises go abroad to borrow money.

Low interest rates abroad and mature market management of banks will pose a major challenge to domestic banks. For this reason, demand interest rate is to increase the cost of RMB capital that is incorporated into them.

Such treatment is unfair.

On the purpose of "Renminbi external debt fund", foreign debt funds shall not be used to invest in securities, financial products, trust products, derivatives, non self occupied real estate, and two high one remaining projects, and shall not be used for issuing entrusted loans.

Foreign debt funds can only be used for the production and operation of the registered institutions in the region (who borrows the principle of borrowing, the actual location of the registered institutions in the district), the project construction in the area, and the construction of overseas projects.

However, whether or not we can enter the securities market should be reconsidered.

As a matter of fact, the reason why the regulation of accounts has not been boldly released is nothing more than worries about hot money, arbitrage activities and independence of monetary policy.

But are we overly worried about opening up the capital market? Suppose we let go of the market now, are foreign investors really willing to come to China's "big casino"? First of all, if we want to get profits from the capital market, the first prerequisite is to find a counterparty. However, the current capital market in China is a hot potato. Even residents and institutions in our country have generally lost confidence in the market, not to mention foreign capital.

If there are no counterparties, what about "copy the bottom" and "loot"? "Shanghai and Hong Kong through train" should belong to "great good" and fail to enhance market confidence. The market only responded to the "rebound" on the first day after the announcement, followed by a downward consolidation channel.

Since the opening of the "through train", it can be predicted that the upper limit of 300 billion will be hard to achieve. In Hong Kong, the funds are unwilling to enter the depressed A share market. Instead, a large amount of capital fled from the A share market. The negative emotions of the market can be seen.

The same situation has long been shown in the Japanese capital market.

The Japanese stock market has not recovered its strength since 1990.

Japan's capital market is "completely open", but how many foreign investors are willing to enter? China's securities market should focus on internal reform rather than external shocks. Even if there are external shocks, its impact is very limited and can be blocked by exchange rate fluctuations.

Why not simply relax the RMB cross-border business, provide the convenience of RMB settlement as far as possible, expand the scope of RMB's use, promote the internationalization of RMB with the extensive use of RMB, and further promote the formation of the RMB exchange rate market mechanism outside the region, and make it more bold, so that a more flexible exchange rate can play a role in the "capital market" of the capital market, and help to increase speculative costs and reduce speculation?

"First line release, second line control", but for the real economy, "open up one side".

MNC's capital management headquarters is most concerned about the "cross border two-way RMB pool".

The RMB movement between the four types of accounts still exists because of the isolation of "identity" (residents and non residents), which is not conducive to mobilizing the enthusiasm and initiative of the member enterprises in the "industrial chain" of pnational corporations.

The offshore business of multinational companies is the best booster for the internationalization of the currency.

It is also the cornerstone of maintaining the "network externality" of the international currency.

We should maximize the renminbi pool of funds.

This is the main path to promote RMB internationalization.

Multinational enterprises can integrate the total accounts of the renminbi and the people's international total accounts under the centralized collection and payment business, improve the capital flow on the "industrial chain", and help multinational corporations reduce operating costs, thereby improving the efficiency of the real economy.

It should be noted that the RMB's cross-border use based on the convenience of the RMB pool of multinational corporations is fundamentally different from that of the RMB import and export settlement promoted by the appreciation of the renminbi.

The convenience of pnational corporations' RMB capital management promotes the cross border use of RMB, which is based on administrative convenience and institutional innovation. This way provides another way to save costs for enterprises.

The way of appreciation is sustainable development.

Therefore, a unified (Offshore) non resident RMB account management method should be introduced to replace the original multiple accounts.

RMB accounts in the FTA and RMB pool are all exploring the way of "going out".

China's economy is becoming more and more international.

Today, because of the foreign exchange in the money supply, the advance and retreat of the loose quantitative monetary policy in the United States will directly cause the fluctuation of China's money supply; the spread of domestic and international interest rates and the lagging development of the capital market make it difficult for the interest rate to make reasonable pricing of assets; the affordability of the real economy and export-oriented enterprises to the exchange rate risk makes the elasticity of RMB exchange rate limited; all these are waiting for the promotion of RMB internationalization.

Because the internationalization of local currency can fundamentally reduce the exchange rate risk of import and export enterprises, so as to "block" the international market through exchange rate fluctuations.

"The impact of the big progress on the capital market.

Because capital account liberalization requires exchange rate fluctuations to "convoy".

In addition, the expansion of capital market needs financial support, and the pparency and security of the legal system of capital market determine the willingness and confidence of "non residents" to hold Renminbi.

On the other hand, the promotion of RMB internationalization can reduce China's dependence on the US capital market, so as to really reduce the money supply caused by foreign exchange holdings and fundamentally get the independence of monetary policy.

The independence of monetary policy is also the core interest of China.

To sum up, there is nothing to be hesitant about to relax the RMB account in the free trade area.