Date
18 December 2017
Lifting of the daily exchange limit has helped boost RMB deposits in Hong Kong, says DBS Bank.
Lifting of the daily exchange limit has helped boost RMB deposits in Hong Kong, says DBS Bank.

RMB deposits up 15% after conversion cap removal: DBS

Renminbi deposits at DBS Bank (Hong Kong) have risen by 15 percent in a week after the removal of the daily conversion limit of 20,000 yuan for local individuals, a top executive of the bank said on Monday.

Pearlyn Phau, managing director & head of consumer banking group and wealth management at DBS Bank (Hong Kong), said yuan deposits were not affected by ongoing sale of two-year dim sum bonds that offer a yield of 2.93 percent.

She also said that there would not be any large-scale capital outflow from China despite the Chinese central bank’s move to slash its benchmark one-year deposit rate by 25 basis points to 2.75 percent, because the capital account is still closed in the mainland.

The Chinese currency is expected to maintain its uptrend in the near term, she said.

Alex Cheung, managing director and head of institutional banking group at DBS, said the bank will boost the service points for small and medium enterprises to 12 to 15 in the coming year, from the current ten.

The bank is now among the top five lenders serving small and medium firms, he said, adding that it will strengthen links with the mainland to help Hong Kong companies enter the China market.

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JH/JP/RC

EJ Insight reporter

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