• Sun
  • Dec 21, 2014
  • Updated: 8:34pm


The Chinese yuan, also known as the renminbi, is already convertible under the current account - the broadest measure of trade in goods and services. However, the capital account, which covers portfolio investment and borrowing, is still closely managed by Beijing because of worries about abrupt capital flows.

Slow start for Shanghai-Hong Kong Stock Connect is no indicator of its true potential

The stock link-up represents the most unfettered access yet to Chinese assets for global investors. Photo: Reuters

The recent link-up between the stock exchanges of Shanghai and Hong Kong marks another milestone in China's drive to reintegrate with the international financial system.

Monday, 15 December, 2014, 6:43am

Yuan may have shot at getting global reserve currency status

Yuan may have shot at getting global reserve currency status

For the first time, China has a real shot at getting the IMF to endorse the yuan as a global reserve currency alongside the US dollar and euro.

12 Dec 2014 - 7:02am

Yuan bears shun PBOC signal amid rate cut

The yuan recorded the second-biggest jump in volatility in Asia since November 21, when the PBOC cut its one-year lending rate. Photo: EPA

Efforts by the People's Bank of China to signal it will let the yuan strengthen even as it grapples with a slowing economy on the mainland are being lost on currency strategists.

4 Dec 2014 - 4:41am

South Korea launches yuan-won market in Seoul

South Korea's Finance Minister Choi Kyung-hwan speaks at the opening ceremony of the Won-yuan market in Seoul yesterday. Photo: Xinhua

Direct trading between the Chinese and South Korean currencies began, with traders and government officials in Seoul saying transactions were more active than expected.

2 Dec 2014 - 12:17pm

Hong Kong must prepare itself for the age of the renminbi

Hong Kong can focus on areas where other offshore centres may not enjoy the same degree of access.

The launch of the Shanghai-Hong Kong Stock Connect pilot programme is another important step in the renminbi's journey to internationalisation.

28 Nov 2014 - 8:01am 2 comments

Swift says 15 more countries now using yuan to settle over 10pc of trades with mainland, Hong Kong

Swift reports that 15 more countries are now using yuan to settle over 10 per cent of their trade and investment deals with the mainland and Hong Kong. Photo: EPA

Fifteen more countries are now using the yuan to settle more than 10 per cent of their trade and investment deals with mainland China and Hong Kong, bolstering the view that the currency is becoming more popular internationally.

27 Nov 2014 - 9:15am 1 comment

China to liberalise yuan in experimental economic zones

The yuan is not yet fully convertible in the Shanghai free-trade zone.

Beijing plans to liberalise the yuan's capital account in the state-level economic development zones, the latest sign that it is intent on deepening financial reforms.

22 Nov 2014 - 5:04am

Sydney yuan hub status a windfall for importers

The Australian dollar has more to gain from an accord on the yuan given the so-called exchange rate correlation. Photo: Bloomberg

Australian importers are in line for a windfall after President Xi Jinping used his visit to the country to anoint Sydney as a yuan trading centre.

18 Nov 2014 - 5:11am

Offshore yuan surges as through train kicks off

Hong Kong is contending with large outflows of yuan on a daily basis that could lead to a surge in cash funding costs for global investors in the offshore yuan market. Photo: Bloomberg

The yuan posted its biggest offshore intraday increase in more than three years yesterday as demand for the currency surged in response to heady buying of mainland shares on the debut of the stock connect scheme.

18 Nov 2014 - 5:09am

HK at the centre of yuan reform

HK at the centre of yuan reform

The 550 billion yuan (HK$700 billion) stock connect scheme that links share trading between Hong Kong and Shanghai from today has already been hailed as just as important to our city as the H-shares listings of 20 years ago.

17 Nov 2014 - 9:20am

Shanghai's role shrinks as Hong Kong scraps yuan cap

The offshore yuan market in Hong Kong will become bigger.

Hong Kong appears to have stolen a march on Shanghai with the decision to scrap the daily cap on yuan conversion by shifting settlement to its own offshore yuan pool, cutting Shanghai banks out of the picture in the process.

14 Nov 2014 - 7:00am

Through train a catalyst for removal of yuan exchange cap

Andrew Fung says it would be better for Hong Kong to operate as an offshore yuan market without limits.

That the 20,000 yuan exchange cap will be removed the same day the stock connect scheme kicks off is no coincidence.

13 Nov 2014 - 7:10am

Beijing takes baby steps on capital control easing

HKMA's chief executive Norman Chan yesterday announced the end to daily yuan limits. Photo: Sam Tsang

Ending restrictions on the amount of yuan Hong Kong residents can exchange reinforces the city's position as the global centre for offshore yuan trading and marks another incremental step in liberalisation of the mainland's capital account.

13 Nov 2014 - 7:10am 29 comments

Bankers' support for scrapping of daily yuan conversion cap decisive

Bankers' support for scrapping of daily yuan conversion cap decisive

The Hong Kong Monetary Authority toyed with various options on the 20,000 yuan daily exchange cap while lobbying Beijing but finally decided to press for its elimination altogether in response to demands from bankers, the Post has learned.

13 Nov 2014 - 5:38am

HKMA scraps 20,000 yuan daily conversion cap in landmark reform

HKMA chief Norman Chan says the daily cap to exchange Hong Kong dollars for yuan will be lifted starting on Monday when the Shanghai-Hong Kong Stock Connect scheme is launched. Photo: Sam Tsang

Hong Kong will allow the city's residents to convert yuan freely from Monday - a landmark reform that marks the latest step in the internationalisation of the tightly controlled currency.

13 Nov 2014 - 8:01am 9 comments