HONG KONG, June 17 Daily average trading volume
of yuan in Hong Kong jumped to a record in May, exceeding the
volumes of Hong Kong dollars for the first time ever, indicating
the yuan's growing importance in international trade.
Average daily yuan trading volume rose to a record 390
billion yuan ($63.61 billion) last month in Hong Kong, according
to data from the Hong Kong Monetary Authority and comments made
by HKMA chief Norman Chan to reporters during a yuan roadshow in
Chan said he expected turnover to rise further.
In comparison, the average volume of Hong Kong dollars
traded daily was 487 billion Hong Kong dollars ($62.74 billion).
The growth of the offshore yuan market in Hong Kong has gone
from strength to strength since it was launched in mid-2010,
with deposits growing from less than 1 percent of total deposits
in the Hong Kong banking system to around 10 percent now.
Chart of CNH deposits in HK:
That impressive growth has led to the rise of a thriving
offshore yuan bond market in Hong Kong and rising trade
settlement volumes, with more than 12 percent of China's global
trade now denominated in the yuan compared to less than 1
percent in 2010.
While the market's momentum slowed in the second half of
2012 due to weak global sentiment and a Chinese leadership
transition, recent months have seen a renewed determination from
Beijing to widen the yuan's footprint in global trade.
New offshore yuan centres have been opened in Taiwan and
Singapore, regulators have relaxed restrictions on investments
via yuan and foreign currency quotas and more channels for
moving yuan funds across borders have been opened.
But even as more cities have shown a desire to become
offshore yuan centres, the evidence indicates that Hong Kong
remains the overwhelming leader in spearheading China's yuan
For instance, a recent City of London report said that yuan
deposits in banks and private wealth accounts in London declined
in 2012 compared to net growth in Hong Kong in that period.
In Hong Kong, about 174 participants had signed on to the
yuan real time gross settlement system (RTGS), a system
responsible for clearing all interbank payments, by the end of
2012, according to HKMA data.
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