Hong Kong is well placed to foster the rapid development of the offshore renminbi (RMB) market, with important spillover effects on jobs and the broader economy
The offshore RMB business will boost Hong Kong's status as a global financial centre, with development of a significant – and previously lacking – bond market. RMB-denominated equity listings also offer the prospects for robust growth in a sector of existing competitive strength.
China's expanding trade will spur the development of a wider RMB deposit base in Hong Kong, boosting its position in international banking markets. At the same time, this will promote the holding of RMB in foreign exchange reserves by central banks, particularly within Asia. This development alone could propel the RMB into a significant position among the top international currencies.