CNY cross-border trade is expected to double by 2020

Tuesday 2 December 2014 00:39 CET | News

Chan Tak-lam, chief executive of the Hong Kong Monetary Authority (HKMA), has claimed that CNY trade across borders is expected to double by 2020, reports.

CNY-based foreign trade accounts for 15% to 20% of Chinas total trade.

Chan has also argued that sales of products such as exchange-traded funds associated with the Chinese mainlands A-share market are growing rapidly. From January to October 2014, Chan added, CNY offshore trading doubled to the equivalent of USD 30 billion.

Hong Kong is the worlds largest offshore CNY market, with deposits of the currency now in excess of USD 180 billion (CNY 1.1 trillion), about half of the total offshore CNY globally.

Chan said that he called for an expansion of quotas for the CNY qualified institutional investor program, which allows certain overseas institutions to use CNY to invest in the mainlands capital market, since the current quota of USD 43.9 billion (CNY 270 billion) allocated to Hong Kong can no longer meet demand and the region hoped that mainland regulators would raise the quota as soon as possible.

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Keywords: Hong Kong, CNY, cross-border, trade, double, 2020, HKMA, transactions , chief executive
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce