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.

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.

Thursday, 13 November, 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

Yuan milestone as onshore direct trade with Singapore dollar starts

The Singapore dollar-yuan parity rate will be set each morning, with the spot trading range 3 per cent above or below that rate. Photo: AP

The yuan will start onshore direct trading with the Singapore dollar today, a milestone in Beijing's ambition to globalise its currency and offering cost savings that should make the yuan more popular in Southeast Asia.

28 Oct 2014 - 5:42am

China’s overseas investment schemes set to boost yuan

The yuan pool expanded much more slowly this year than expected, mainly because of new ways for foreign investors to use yuan in mainland China to buy high-yielding assets, as well as yuan being cheaper in offshore markets. Photo: Reuters

The mainland is studying pilot schemes that will allow domestic investors to make overseas investments using the yuan, a move that could pump fresh oxygen into the stagnant offshore yuan pool.

28 Oct 2014 - 3:58am

Sydney expected to get yuan clearing bank soon

China is to boost the internationalisation of the yuan. Photo: Reuters

Beijing is set to accelerate plans to boost the international use of yuan by concluding pacts with key regional trading partners Australia and Singapore.

25 Oct 2014 - 3:41am

China speeds up transformation of yuan into global currency after crisis

Apart from opening its capital account, China also needs to build reliable legal institutions and introduce checks and balances on power in its push to internationalise the yuan to rival the dollar.

As US long bond yields dip below 2 per cent, we are reminded once again that when the world gets nervous, the United States government's funding costs get cheaper.

21 Oct 2014 - 8:15pm 3 comments

Cross-border yuan payment platform next challenge for Beijing

According to Swift, the yuan is the seventh most-used currency for payments.

Launching a long-awaited cross-border yuan payment platform is one of the next challenges Beijing needs to tackle given the complexity in settling yuan trades and as offshore dealing in the currency swells.

20 Oct 2014 - 5:05am

Chinese banks boost new loans amid credit easing

Aggregate financing, which includes loans issued through non-banking channels, reached 1.05 trillion yuan last month. Photo: Bloomberg

16 Oct 2014 - 11:40am

Beijing's political ties crucial to liberalising the yuan

The pattern of yuan swap lines between the People's Bank of China and other central banks has borne testimony to the broad appeal of these measures.

When Xi Jinping touches down in a foreign capital, the odds are that he will pull out of his suitcase a currency deal that host countries will eagerly sign on to as the president furthers Beijing's goals for the internationalisation of the yuan.

13 Oct 2014 - 4:59am

Bailiwick of Jersey keen to be part of global renminbi family

London is becoming the lead centre for yuan in Europe.

Another jurisdiction in Europe is mulling joining the race for a slice of the growing global yuan business pie - the Bailiwick of Jersey, an island sitting between Britain and France.

13 Oct 2014 - 4:13am

Yuan proves to be a bulwark against strong US dollar in Asia

The US dollar is hovering at its strongest level in four years.

A stronger US dollar has historically caused fund managers to flee emerging-market assets but Asia seems to be bucking the trend this time, largely because of the yuan.

9 Oct 2014 - 5:55am