Hong Kong investors have responded more than enthusiastically to the arrival of yuan-denominated products and, voting with their savings, have helped the city quickly assume pre-eminence as an offshore centre for the currency.
Now, though, with the central government and central bank making clear their aim of seeing the yuan one day attain reserve currency status, businesses and individuals are asking what that could mean in terms of relative values, potential returns and opportunities for strategic investment planning.
'Looking at it from China's perspective, there might be several advantages,' says Thomas Poon, HSBC's head of business planning and strategy in Hong Kong. 'But remember that such status is driven by market consensus. It is not a 'tick the box' approach with hard and fast rules. Essentially, if other governments and central banks are increasingly comfortable about investing a portion of their currencies in the yuan, then a critical mass is reached.'
At a policy level, Poon notes that China's ambitions in this respect are partly symbolic and partly a consequence of its position as one of the top dogs in the global economy.
Down the line, though, there could also be direct financial benefits. Wider acceptance of the yuan could lead to cheaper borrowing costs, with the currency seen as something of a safe haven. It would also help mainland companies save on hedging, reducing the incidental expenses of doing international trade.
However, any move towards reserve currency status depends first on Beijing meeting basic conditions. One is the complete opening up of capital account items. Another is to remove restrictions on capital flows to and from the mainland. A third is to clarify intentions on whether the yuan would be fully convertible - like the Hong Kong dollar - or freely convertible, making it subject to certain approvals.
'Also, the exchange rate regime and the domestic interest rate system in China should be market-driven,' Poon says. 'These things are not quite there yet. The recent widening of the yuan's trading band is a step in the right direction, but there is still long way to go.'