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.

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.

Monday, 17 June, 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

China's yuan set for monthly gain versus US dollar amid reform bets

The yuan rose 0.6 per cent against the dollar this month and was little changed for the week, according to China Foreign Exchange Trade System prices.

The mainland's currency, the yuan, headed for its third monthly gain yesterday as the central bank set a record fixing for the currency, fuelling optimism officials will accelerate exchange-rate mechanism changes.

1 Jun 2013 - 4:19am

Currency reforms won't be stalled by yuan volatility

Photo: Xinhua

The renminbi has experienced increasing volatility in recent weeks in light of new regulations and strong inflows that have seen the currency touch record highs versus the US dollar. This highlights the interesting challenge faced by Chinese policymakers – how to cool flows of “hot money” while at the same time pushing forward with much-needed reforms.

30 May 2013 - 3:00am 1 comment

HSBC, Standard Chartered sell yuan bonds in Singapore

China has eased controls on the yuan to gradually increase the global use of the currency, which has risen to a record high. Photo: Xinhua

HSBC Holdings and Standard Chartered sold 1.5 billion yuan (HK$1.9 billion) worth of notes in Singapore yesterday in the first dim sum bond issuances since yuan-clearing became available in the city state.

28 May 2013 - 3:05am

China adviser sees yuan supplant US dollar in 30 years

A senior Chinese adviser says that over the next 30-odd years to 2040, China should adopt a three-step strategy to achieve the internationalisation of the renminbi, also known as the yuan. Photo: Reuters

A Chinese central bank adviser sees the Renminbi superseding the US dollar as the global currency and predicts full liberalization of China’s capital account between 2015 and 2020, the China Securities Journal reported on Monday.

27 May 2013 - 10:44pm 1 comment

ICBC to start clearing yuan in Singapore from Monday

ICBC set to begin yuan clearing in Singapore. Photo: Reuters

ICBC's Singapore branch said it would start yuan clearing bank services for participating banks. That might divert some yuan flows from Hong Kong because another yuan clearing bank in addition to Bank of China (Hong Kong) can now provide the service, said Woody Chan, Citic Bank International's executive vice president and treasurer.

25 May 2013 - 2:53am

Yuan's rise powers surge in gold trade

The yuan touched 6.1279 per US dollar yesterday in Shanghai. Photo: Bloomberg

Average daily volume was 6.5 billion yuan (HK$8.2 billion) so far this year, compared with 1.8 billion yuan for the same period last year, according to the Chinese Gold & Silver Exchange Society. That exceeds the 4.9 billion yuan target set when the contracts were introduced in October 2011.

25 May 2013 - 4:44am

DBS expects yuan funds to swell in Singapore

Andrew Ng sees more yuan business in Singapore. Photo: Edmond So

The biggest bank in Singapore expects yuan liquidity in the country to grow up to threefold from 100 billion yuan (HK$126 billion) in two to three years after the launch of clearing services for the currency there.

22 May 2013 - 4:04am

The road to convertibility is paved with repression

Chinese repression

Great excitement followed Beijing's announcement on Monday that it will draw up an "operational plan" this year for deregulating domestic interest rates and making the yuan fully convertible.

A whole legion of analysts reacted by predicting the liberalisation of China's exchange rate during the next couple of years, and full convertibility within five years.

8 May 2013 - 5:20am 1 comment

Beijing cracks down on hot money inflows for bets on yuan appreciation

Firms took loans in US dollars and converted them to yuan.

In a circular to commercial banks the State Administration of Foreign Exchange (SAFE) introduced for the first time a minimum net open position in US dollars, restricting banks' capacity to lend in the greenback.

7 May 2013 - 4:17am