HK losing ground in yuan payments
City's share of global yuan payments at 72pc last month from 85pc in 2012
Hong Kong's market share in the global yuan business has been shrinking rapidly over the past two years, with other offshore yuan centres turning up the heat on the city as Beijing allows foreign financial centres to dabble in the business.
The city's share of the global yuan payments business shrunk from 85 per cent in December 2012 to 72 per cent last month, according to a SWIFT report released yesterday.
Hong Kong was the first offshore city backed by Beijing for cross-border trades as early as 2009, with all cross-border yuan payments going through the city's yuan clearing bank, Bank of China Hong Kong, in the initial years.
The landscape began changing after more international cities were allowed to begin operating yuan clearing banks and other yuan facilities.
China's shift to support multiple centres of yuan business across the globe from the original Hong Kong-centric system picked up pace in 2012.
Among its competitors, Singapore appears to be the biggest threat to Hong Kong. The city-state is now the biggest offshore yuan hub outside the mainland and Hong Kong, with a 6.17 per cent market share. It surpassed London last July.