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Hong Kong, France Sign RMB Cooperation MoU

by Mary Swire, Lowtax.net, Hong Kong
03 November, 2014

On October 28 in Paris, Banque de France (BdF) and the Hong Kong Monetary Authority (HKMA) signed a memorandum of understanding (MoU) to strengthen their cooperation on renminbi (RMB) business development in Hong Kong and France.

BdF and the HKMA will work together to facilitate more dialogue and collaboration between financial institutions and other companies from Hong Kong and Paris, with a view to promoting greater use of RMB for trade and investment. They will also seek to improve RMB liquidity flows, the availability of RMB financial products and services, and market arrangements and infrastructures for conducting RMB transactions safely and efficiently in the two centers.

Christian Noyer, BdF's Governor, said: "With RMB internationalization, Hong Kong and Paris have developed to be among the most important offshore centers for RMB business. The strengthened cooperation between HKMA and BdF will help to develop further the breadth and depth of RMB clearing and financial services in the two centers and will facilitate further trade and investment between China, Hong Kong, and Paris."

Norman Chan, HKMA's Chief Executive, added that the HKMA looked forward to "having closer collaboration with BdF so as to promote RMB business links between Paris and Hong Kong. I believe this will enable financial institutions and corporates to capture more fully the enormous opportunities offered by the new era of RMB internationalization."

On the same day, the HKMA, together with Paris EUROPLACE and the Hong Kong Trade Development Council, organized a seminar on "Renminbi Internationalization: A New Era." The seminar was attended by over 160 representatives from corporates, banks, and other financial institutions.

In his keynote presentation, Chan remarked that, "In just five years since the RMB trade settlement pilot scheme was introduced in 2009, the policy headroom for the international use of RMB has been expanded significantly, with more and wider bridges linking the onshore and offshore RMB markets. Currently, some 20 percent of China's external trade, 30 percent of foreign direct investments into China, and 18 percent of outward direct investments from China are settled in RMB."

"Against this trend," he added, "Hong Kong has developed into the global hub for offshore RMB business, offering a comprehensive one-stop RMB financial platform. French banks have been making good use of the offshore RMB market in Hong Kong to serve their customers to expand their China and RMB-related businesses."

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