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.

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.

Thursday, 27 November, 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

Opening up credit card clearing market could lead to yuan outflows

UnionPay's grip on the market is being loosened. Photo: Reuters

Opening the mainland's credit card clearing business to foreign companies could poke a hole in China's tightly protected capital account,

5 Nov 2014 - 8:42am

Hong Kong yuan business boosted by banks' appointments as liquidity providers

Hong Kong has run out of its 270 billion yuan of renminbi qualified foreign institutional investor quota. Photo: Bloomberg

Seven banks were appointed primary liquidity providers for offshore yuan business in Hong Kong yesterday to cement the city's leading role as an offshore yuan centre.

4 Nov 2014 - 9:47am

Currency strength damps interest in yuan loans

Outstanding yuan loans were up 30 per cent as of August.

Hong Kong banks have been happy to extend yuan loans but they have not proved popular with borrowers.

3 Nov 2014 - 4:19am 3 comments

Review urged on future role of Hong Kong dollar

When the yuan became convertible, Hong Kong should explore the future of the Hong Kong dollar.

HSBC Holdings is calling for a review of the future role of the local currency, including possibly severing its link to the US dollar and switching it to the yuan instead, or even making the yuan the legal tender in the city.

1 Nov 2014 - 5:21am

Yuan hits its stride as offshore hubs catch up

Yuan payments worldwide have soared to a record high. Photo: AFP

Yuan payments worldwide soared to a record high last month, in the latest sign that the currency is fast spreading out of China as other global financial hubs catch up with Hong Kong in yuan trade.

31 Oct 2014 - 6:04am