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.

Yuan rise puts heat on Hong Kong dollar peg

The Hong Kong dollar has been pegged to the US dollar since October 1983. Photo: Bloomberg

With the rising use of the yuan in trade and investment, debate about the Hong Kong dollar's 30-year-old peg to the US dollar is intensifying.

Monday, 30 September, 2013, 4:00am

Experts wary of roll-out for liberalisation

Illustration: Lau Ka-kuen

Market watchers remain sceptical about whether Beijing's targeted time frame for opening its capital accounts, a key step in the yuan's journey to global acceptance, is too soon.

30 Sep 2013 - 4:00am

Not just about currency appreciation anymore

Hong Kong's market for yuan investments is thriving, despite the fact that yuan currency appreciation has gone off the boil. Photo: Bloomberg

Most Hongkongers have experienced the yuan story in terms of their investments. Initially, this was in the form of stockpiling vast amounts of yuan on deposit at banks at a low interest rate.

23 Sep 2013 - 4:03am

Economists expect 5pc gain against greenback

The yuan is expected to appreciate 5 per cent against the US dollar by 2015. Photo: Reuters

The yuan is expected to appreciate 5 per cent against the US dollar by 2015, a more gradual pace than in recent years, amid a slowdown in mainland economic growth and financial reforms designed to allow more two-way fluctuations in the exchange rate, economists say.

23 Sep 2013 - 4:03am

Pressure on Hong Kong to remain top yuan hub

In November, Hong Kong will mark the 10th anniversary of the State Council's approval of yuan business for local lenders.

After a decade as the only city in the world allowed to conduct offshore yuan business, Hong Kong is now facing fierce competition to its role as the leading offshore yuan centre.

23 Sep 2013 - 4:03am

Beijing's liberalising of yuan courageous, says Xinhua commentary

Xinhua criticised Western politicians who have accused China of keeping its currency artificially low. Photo: Bloomberg

China's moves to liberalise its currency have been courageous given the economic risks, and the next areas for reform include land policy, state-owned industries and taxation, Xinhua said in a commentary yesterday.

22 Jul 2013 - 5:32am

'Liconomics' could mean a weaker yuan

'Liconomics' could mean a weaker yuan

With Premier Li Keqiang just over 100 days in the job, investors have concluded that he is serious about pressing ahead with financial reforms. That means economic pain in the short term, with growth set to slow as Li attempts to curb China's runaway credit creation.

28 Jun 2013 - 5:06am

PBOC approves individual outward investment pilot: report

PBOC approves individual outward investment pilot: report

China’s central bank has approved plans to launch a new pilot program allowing individual households to make financial investments overseas, state media reported on Tuesday, in the latest sign of progress towards capital account liberalisation.

26 Jun 2013 - 2:19am

The yuan hasn't overtaken the HK$ quite yet, Mr Chan

The yuan hasn't overtaken the HK$ quite yet, Mr Chan

Monday's edition of the Post quoted the boss of the HKMA, Norman Chan Tak-lam, proclaiming that in May the value of yuan interbank payments cleared through Hong Kong's real-time gross settlement system, or RTGS, surpassed the value of Hong Kong dollar payments for the first time.

19 Jun 2013 - 4:40am 1 comment

Asian bonds a gamble for iShares

Asian bonds a gamble for iShares

Hongkongers like bonds, yuan and exchange-traded funds. So iShares had the brilliant idea of combining all three, creating Hong Kong's first offshore yuan-denominated bond ETF.

17 Jun 2013 - 5:17am

Retail slice of yuan bonds in Hong Kong slashed

Woody Chan, executive vice-president and treasurer at China Citic Bank International. Photo: May Tse

The Ministry of Finance said it plans to issue 23 billion yuan (HK$28.9 billion) of offshore yuan bonds in Hong Kong in two batches this year. The total issue size remains the same as last year but the amount available for the public has been slashed to 3 billion yuan from 5.5 billion yuan last year.

10 Jun 2013 - 5:03am

No relief from yuan pain for exporters

The yuan has appreciated by 20 per cent against the yen this year, and export growth slumped to just 1 per cent in May. Photo: Reuters

The mainland's struggling exporters will look in vain to currency regulators to help them survive a prolonged downturn in demand from their major foreign markets.

10 Jun 2013 - 4:52am

Yuan listings in Hong Kong face uncertain future

Yuan deposits in Hong Kong rose to 603 billion yuan last year. Photo: Bloomberg

Chinese companies looking for a yuan-denominated listing in Hong Kong are getting mixed messages. On one hand, Hong Kong officials are keen on developing the nascent yuan business. On the flip side, however, the city's pool of investible yuan is insufficient to generate a meaningful institutional investor base.

10 Jun 2013 - 4:03am

Growing power of the yuan

Illustration: Emilio Rivera

The yuan has continued its strong run, rising to the highest-ever level against the US dollar on Friday, ahead of talks between President Xi Jinping and President Barack Obama.

10 Jun 2013 - 6:00pm

Yuan heads for key level against dollar

Gains by the yuan against the Hong Kong dollar may feed into higher consumer inflation, Hang Seng Bank says. Photo: David Wong

The yuan could breach another key psychological level this year to trade at 6 to the US dollar as the mainland authorities seem inclined to ease the reins on the currency further.

Spot yuan closed yesterday at 6.1287 per dollar in Shanghai. It has been hitting 19-year highs frequently in the past few months and has strengthened about 1.7 per cent against the dollar since April.

6 Jun 2013 - 3:41pm