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RMB trade settlement amount was used for speculative purposes

Todays Date: December 12, 2018

RMB trade settlement amount was used for speculative purposes, to which the RMB settlement of cross-border Bank Guangzhou Branch Office of the Deputy Director of the Working Group Pilot Pure Fan Lin in Hong Kong yesterday said the central bank has recently asked banks to strengthen the authenticity of the RMB trade settlement application review, require the production of the original customs documents, contracts and invoices to prove the use of funds transfer. He said that the central determination to promote the RMB business will not be shaken.

Fan Lin pure that the Hong Kong stock of only 2,000 billion yuan, compared with the stock of Mainland financial institutions a very small proportion, it is difficult to judge is the hot money, but the mainland has also been improved by including measures such as the deposit reserve ratio to curb hot money inflows. Fan Lin pure Furthermore, the RMB deposit interest rate is currently at 2.5% in the Mainland, Hong Kong, less than 1%, in the middle of the spread or impact of the Mainland market will attract capital, so the central bank will closely monitor the market dynamics.

Zhu Li, Executive Director Hong Kong Monetary Authority, said Alice, year 1 to October cross-border trade settlement of RMB 1,300 billion were exported, imported a total of more than 330 billion yuan, of which only 100 billion through the clearing bank in Hong Kong, and have actual trade background. Fan Lin pure is expected in November trade settlement amount will continue to increase more than 400 billion yuan, of which about 95% with Hong Kong.

According to Goldman Sachs research report, August to October period, involving 137 billion yuan trade settlement among the 83% of the total 113 billion yuan into the deposit growth. Thus available, trade settlement of RMB in Hong Kong and renminbi deposits are behind the surge, by the trade settlement go to the high proportion of deposits.

Fan Lin pure that the province of Guangdong Province is applying for the RMB to expand the pilot cross-border trade settlement list of export enterprises. It is reported that the application has been approved and will be announced soon, will the exception of Shenzhen, the 20 cities in Guangdong Province Trade Settlements exporters list will be expanded to over 5,000 (international trade). Currently, the mainland settlement of RMB trading pilot were 365 export enterprises in Guangdong Province accounted for more than 270.

Fan Lin Pure also said that as of the end of October, the Guangdong Provincial total trade transactions of RMB has increased to 131.5 billion yuan, 49% in trade settlement from the state-owned banks, about 33% of the balance sheet line from the joint-stock commercial banks, about 16% are foreign banks, policy banks accounted for more than 1%. Since mid-August the central bank approved by the Clearing Bank for RMB and other foreign institutions to enter the mainland yuan bonds three years, ICBC Asia, BOC Hong Kong, HSBC, Standard Chartered Bank has received 29.2 billion limit. From: china business, wholesale electronics

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