Date
23 September 2017
Monetary Authority chief executive Norman Chan  said the prospects of renminbi business in the city look promising. Photo: HKEJ
Monetary Authority chief executive Norman Chan said the prospects of renminbi business in the city look promising. Photo: HKEJ

Hong Kong renminbi savings top 1 trillion yuan

Renminbi deposits in the city have reached more than 1 trillion yuan (US$160.9 billion) at the end of 2014 following the lifting of the daily conversion limit and the launch of the stock through-train, the Hong Kong Economic Journal reported Wednesday.

The renminbi pool has surpassed 1.1 trillion yuan, based on the amount of certificates of deposits in the city, said Norman Chan Tak-lam, chief executive of the Hong Kong Monetary Authority.

The prospects of renminbi business look promising, Chan said, noting that the authorities in Hong Kong and Shenzhen are considering launching a cross-border stock trading mechanism similar to the Shanghai-Hong Kong Stock Connect.

The average daily clearing volume of the Chinese currency in the Hong Kong banking system amounted to 800 billion yuan, compared with 700 billion yuan a year earlier.

Meanwhile, 190 billion yuan worth of dim sum bonds were issued, up 60 to 70 percent from 2013.

Lenders such as Wing Lung Bank are raising interest rates to absorb more renminbi savings which are expected to keep expanding.

Bank of China (Hong Kong) Ltd. is lowering the threshold for depositors qualified to a 3.3 percent annual interest to 50,000 yuan from 300,000 yuan previously.

It is also raising longer-term time deposit interest rates for new savings while cutting those for shorter-term deposits.

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VW/JP/CG

Freelance journalist

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