2010-07-05

人民币“再出海” Yuan goes to sea again

人民币“再出海”
RMB "and then out to sea" (Google translation)

A lengthy article discussing currency reform in China. The Google translation is not very good, but the rough ideas are there. Interesting description of Hong Kong serving as a firewall for hot money flows into China.

I've seen very little coverage of the developments in China in the Western press, though I did find this article from a little over a week ago:
A deeper look at China's currency reform
One new development has been the expansion of renminbi trade settlements. Cross-border renminbi trade settlement is now allowed in all countries, after starting first in Hong Kong, Macau and members of the Association of Southeast Asian Nations. This brings with it a new issue -- where to park the renminbi?

A quickening pace in the development of offshore renminbi products is one area to watch. Foreign investors should find more options to gain exposure to renminbi with better returns. Hong Kong will be at the forefront here, says HSBC, and a mini Qualified Foreign Institutional Investor (QFII) scheme is on the agenda, giving renminbi investors access to domestic China stocks.

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