• Fri
  • Dec 19, 2014
  • Updated: 2:38am


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.

City's offshore yuan pool under threat from trade discount

Cheaper offshore yuan means it is more economical for an importer to switch yuan into dollars on mainland than to bring yuan to Hong Kong to settle a trade. Photo: Robert Ng

Hong Kong's offshore yuan pool risks drying up as offshore paper trades at its widest discount in more than two years, prompting mainland importers to avoid coming to Hong Kong to settle their cross-border trades.

Monday, 6 October, 2014, 4:10am

Yuan to start direct trading with euro today

Yuan to start direct trading with euro today

The mainland will start direct trading between the yuan and the euro today as the world's second-largest economy seeks to spur global use of its currency.

30 Sep 2014 - 5:33am

Take a lesson from the West, yuan boost won't spur growth

Who wants to put money into property when you can expect to get less back out than you put in and still have to pay borrowing costs for the privilege?

A 500 billion yuan injection from the People's Bank of China into the country's five biggest banks might not be enough to stave off an economic slowdown in the second half of the year.

28 Sep 2014 - 7:34am 8 comments

Surging yuan trade sees Russia tilt towards China

Despite rising yuan trade, nearly 90 per cent of the US$5.3 trillion a day in 2013 foreign-exchange deals involved US dollars. Photo: Reuters

Vladimir Putin has a secret agent in his campaign to curb the impact of sanctions on Russia's economy: Mr Yuan.

26 Sep 2014 - 5:09am

ADB puts priority on stability in yuan internationalisation

The People's Bank of China's research team had outlined a timeframe to achieve basic convertibility by 2015. Photo: Reuters

The Asian Development Bank said Beijing probably will adopt a new model of currency internationalisation in which capital market development may not be as important as it has been in the past.

24 Sep 2014 - 6:13am

ICBC issues offshore yuan bond in Singapore

ICBC issues offshore yuan bond in Singapore

Industrial and Commercial Bank of China, the mainland's biggest lender, raised four billion yuan (HK$5.04 billion) through its Singapore branch in what would be the Lion City's biggest offshore yuan bond issuance.

17 Sep 2014 - 5:39am

HKMA lobbies Beijing to lift cap on yuan conversion

Norman Chan sees a need for more liquidity facilities in the market to accommodate an expected spike in demand for yuan. Photo: Dickson Lee

The Hong Kong Monetary Authority is lobbying Beijing to lift the cap on the amount of yuan local residents can convert.

16 Sep 2014 - 3:24am

Use of yuan in cross-border mainland China trade hits 3-month low

The yuan has recovered more than half of the losses it suffered in the first half of this year. Photo: Bloomberg

Only 16 per cent of the mainland's cross-border trades were settled in yuan last month, a three-month low, as companies continued to avoid the currency amid its uncertain outlook and rising volatility in the foreign exchange market.

13 Sep 2014 - 4:47am

Russia and China to boost bilateral rouble-yuan trade

Chinese Vice-Premier Zhang Gaoli (right) and Russian First Deputy Prime Minister Igor Shuvalov shake hands at a signing ceremony in Beijing. Photo: Xinhua

Russia and China pledged yesterday to settle more bilateral trade in rouble and yuan and to enhance cooperation between banks, Russia's First Deputy Prime Minister Igor Shuvalov said.

10 Sep 2014 - 4:05am

Yuan jumps to 6-month high against US dollar

The People's Bank of China raised the daily midpoint exchange rate for the yuan against the US dollar by 187 basis points to 6.152.

The yuan rose to a six-month high yesterday after its biggest single-day increase in the midpoint rate in four years following a record trade surplus for last month.

10 Sep 2014 - 4:05am 7 comments

Yuan convertibility on back burner as Beijing focuses on other reforms

Timing on reforms is a key issue for officials, such as those in the People's Bank of China. Photo: Reuters

Beijing is quietly pushing back its loose timetable to make the yuan freely convertible, policy insiders say.

8 Aug 2014 - 8:31am

China’s Big Four lenders have 1.5tr yuan gap in deposits

An increase in artificial deposits in the second quarter in China pointed to strong demand for loans. Photo: Bloomberg

Tighter liquidity on the mainland may have driven a 1.5 trillion yuan gap in deposits at the country's Big Four banks between June and July, highlighting the lenders' practice of creating "artificial deposits" to skirt regulatory requirements.

6 Aug 2014 - 2:29am

France out to build on gains as yuan hub, consul general in Hong Kong says

Arnaud Barthelemy says that Paris, as a leading financial centre, is well placed to promote greater use of the yuan. Photo: Jonathan Wong

France wants to expand its yuan business on the back of a strong trade relationship with China, while its financial firms are keen to offer yuan investment products, French consul general Arnaud Barthelemy said.

31 Jul 2014 - 6:38pm

Beijing to reduce intervention in yuan when time is right, PBOC chief says

'We hope to let the exchange rate stay at an equilibrium and reasonable level,' said PBOC governor Zhou Xiaochuan. Photo: AP

China will increase the flexibility of the yuan exchange rate and reduce intervention when conditions are ready, its central bank chief said yesterday.

11 Jul 2014 - 12:47am

Delayed payments system stalls yuan’s global ambitions

The new global yuan payments system may eliminate the need for yuan clearing banks. Photo: Reuters

China's quest to turn the yuan into a full-fledged global currency has hit a roadblock, as the planned roll-out of a worldwide payments superhighway looks certain to be delayed by policy snags and technology challenges.

10 Jul 2014 - 11:43pm