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.

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.

Monday, 17 November, 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

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

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

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

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