Three lenders will offer yuan services for non-residents from today as part of a move to expand their business in that currency, after yuan trade settlements rose to a record high in June.
Yuan trade settlements handled by local lenders reached a record of 241 billion yuan (HK$295.48 billion), up 8 per cent from May, according to Hong Kong Monetary Authority (HKMA) data released yesterday.
Yuan deposits in the city also rose to their highest level in four months in June, to 557.7 billion yuan, up 0.7 per cent from May but still down 11 per cent from the peak in November.
HSBC, Hang Seng Bank and Bank of China (Hong Kong) will start offering non-residents yuan accounts and yuan exchange and credit card services today. The HKMA said last week non-residents would now be able to do so, as it wants to attract overseas investors to trade yuan products here.
'China and the HKMA have kept on relaxing the rules regarding yuan businesses, which has strengthened Hong Kong as an offshore yuan trading centre. This provides new opportunities and a good, profitable business for banks,' said Anita Fung, chief executive of HSBC Hong Kong.
'The yuan now settles 10 per cent of global trade and will grow further to become the world's second trade settlement currency.'
The yuan is not yet fully convertible, but Beijing has gradually relaxed rules since 2009 to encourage the use of the currency to settle trade and and for investment globally.