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.

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.

Saturday, 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

Australia takes lead in wider yuan role

An employee packs bundles of Renminbi banknotes at a branch of the Bank of China. Photo: Reuters

Though hardly a week goes by without news of the increasing international role of the yuan, it tends to be of immediate interest to market professionals because it is so gradual. Beijing's capital account restrictions to safeguard the nation's fragile financial system account for that. Occasionally, however, a landmark development gets wider attention.

1 May 2013 - 2:32am 1 comment

Pegging Hong Kong dollar against yuan 'could take years'

The peg to the US dollar has served Hong Kong for nearly 30 years, and replacing it with the yuan "could take many years"

The yuan will eventually be a feasible currency for Hong Kong to peg its dollar against, in place of the US dollar, said John Greenwood, known as the "father of the Hong Kong-dollar peg".

30 Apr 2013 - 4:48am 7 comments

HKMA reveals new measures to boost drive for yuan business

Norman Chan Tak-lam. Photo: May Tse

HKMA chief Norman Chan Tak-lam said the move would "deepen and enhance" Hong Kong's role as a clearing and trading centre for the yuan. While the currency is not fully convertible, Beijing has relaxed rules since 2009 to encourage international businesses and investors to settle trade and investment deals in yuan.

26 Apr 2013 - 4:19am

Yuan's rise traps authorities between rock and hard place

The yuan climbed to a record post-revaluation high against the US dollar yesterday. After its recent gains, the Chinese currency has now appreciated by 1 per cent against the US dollar so far this year.

26 Apr 2013 - 4:13am

SCMP Debate: What's your expectation for China's GDP growth?

Illustration: Lau Ka-kuen

Reporters Victoria Ruan and Celine Sun spoke to senior executives and observers from several countries on the sidelines of this month's Boao Forum. Many believe China will maintain its rapid economic growth despite rising labour costs.

22 Apr 2013 - 6:02am

PBOC poised to widen trading band of yuan

Yi Gang, of PBOC

Beijing is set to widen the yuan's trading band to make the pricing system for the currency more market-oriented. The move reflects the resolve of policymakers to push ahead with financial reforms despite the shaky economic recovery and rising inflows of capital.

19 Apr 2013 - 5:54am

Australia's deals with China create a model for bilateral ties

Julia Gillard, Australia's prime minister. Photo: Bloomberg

Asian nations worried about China's rise would do well to take note of the deals struck by Australia last week. The agreements, signed by Prime Minister Julia Gillard in Beijing, initiated direct trading of currencies, put in place an annual leaders' summit and promised joint exercises with the People's Liberation Army. As a whole, no other country can claim such bilateral ties.

15 Apr 2013 - 2:31am

No need to worry about China's competitiveness

Advantage, China

Fears have been growing recently for China's competitiveness. On one hand, investors fret that the appreciation of the yuan is eroding the competitive edge of China's factories compared with their rivals in Southeast Asia.

15 Apr 2013 - 5:08am 3 comments

Yuan reaches record high against the US dollar

The yuan jumped to 79.775 Hong Kong dollars per 100 yuan, just near the record of 79.729 on Wednesday.

The People's Bank of China set the midpoint at 6.2506 yuan per US dollar - up from the fixing of 6.2578 on Thursday - ahead of a visit by US Secretary of State John Kerry to Asia. The yuan jumped to 79.775 Hong Kong dollars per 100 yuan, just near the record of 79.729 on Wednesday.

13 Apr 2013 - 6:22am 12 comments

Yuan gain points to confidence in Beijing

The yuan reached a 19-year high of 6.1986 per dollar on April 2, after rising 0.3 per cent in the first quarter.

The yuan is rising in tandem with the US dollar for the first time since 2011, a sign mainland policymakers are confident the nation's growth will pick up from its slowest pace in 13 years.

10 Apr 2013 - 3:57am