Holdings of offshore yuan may take up 25%
Source: Xinhua |
February 1, 2013, Friday
|
Print Edition
Print Edition
HONG Kong's offshore yuan deposits, excluding Certificate of Deposits, may account for over 25 percent of total deposits in the city by 2015, making the yuan deposits the second-largest source of deposits in Hong Kong, Hang Seng Bank said in a report yesterday.
Joanne Yim, the bank's chief economist and the report's author, said the yuan looks set to gain importance in the global economy and Hong Kong stands to benefit as an offshore yuan center.
She said the yuan exchange rate is expected to maintain a slightly firmer position against the US dollar this year, with hopes of a rebound in the Chinese mainland's exports and trade surplus.
The People's Bank of China's US dollar/yuan mid-rate may be near 6.20 by the end of 2013, giving an appreciation of 1.4 percent for the yuan compared with the end of 2012, she added.
She said Hong Kong's offshore yuan deposit pool, excluding CDs, could grow at a faster pace, reflecting a likely rebound in cross-border trade settlement flows and potentially higher deposit interest rates as banks compete for yuan deposits.
Yuan deposits could then account for over 25 percent of total deposits in Hong Kong by 2015, from under 10 percent at the end of 2012. This will make yuan deposits the second-largest source of deposits in Hong Kong, replacing the position long held by US dollar deposits.
With the yuan gaining acceptance globally, more firms will opt to settle their cross-border trade in yuan.
"The amount of cross-border trade settlement in yuan could grow by about 20 percent in 2013," the report said.
Joanne Yim, the bank's chief economist and the report's author, said the yuan looks set to gain importance in the global economy and Hong Kong stands to benefit as an offshore yuan center.
She said the yuan exchange rate is expected to maintain a slightly firmer position against the US dollar this year, with hopes of a rebound in the Chinese mainland's exports and trade surplus.
The People's Bank of China's US dollar/yuan mid-rate may be near 6.20 by the end of 2013, giving an appreciation of 1.4 percent for the yuan compared with the end of 2012, she added.
She said Hong Kong's offshore yuan deposit pool, excluding CDs, could grow at a faster pace, reflecting a likely rebound in cross-border trade settlement flows and potentially higher deposit interest rates as banks compete for yuan deposits.
Yuan deposits could then account for over 25 percent of total deposits in Hong Kong by 2015, from under 10 percent at the end of 2012. This will make yuan deposits the second-largest source of deposits in Hong Kong, replacing the position long held by US dollar deposits.
With the yuan gaining acceptance globally, more firms will opt to settle their cross-border trade in yuan.
"The amount of cross-border trade settlement in yuan could grow by about 20 percent in 2013," the report said.
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