No timetable has yet been set for the introduction of a second phase of yuan banking services to banks, says Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong.
Mr Yam, who met People's Bank of China governor Zhou Xiaochuan and China Banking Regulatory Commission chairman Liu Mingkang in Beijing yesterday, said they had discussed a possible increase in yuan business in Hong Kong.
Developments were expected to include yuan bonds and a relaxation in the use of the currency in Hong Kong-mainland trade finance.
Although no consensus was reached on timing and details, Mr Yam said he hoped an agreement on implementation could be finalised by the end of this year.
Mr Yam also brushed off suggestions of any link between the central government's yuan exchange rate policy and yuan banking services in Hong Kong.
'The development of yuan business by Hong Kong banks will have no effect on the currency's exchange rate,' he said.
