Latest News:  
Beijing   Sunny/Cloudy    27 / 14 ℃  City Forecast

English>>China Business

Global yuan trade settlement continues to rise (2)

By Wang Xiaotian  (China Daily)

13:24, October 10, 2012

Wang Yongli, vice-president of Bank of China Ltd, China's fourth-largest commercial lender by market capitalization, said the key to floating the yuan globally lies in whether the central bank will allow a larger scale of the currency's backflow.

Wang said that use of the yuan worldwide has been obviously increasing, but that insufficient backflow has hampered its prospects as an international currency.

"The government should put the majority of yuan clearance on the mainland instead of offshore markets," he said.

He added that an efficient clearance system is essential for the internationalization process of the currency, and that the government should encourage inter-bank bookkeeping clearance instead of cash clearance to further promote the global use of the currency.

But while trade settlement in the yuan appears to be increasing, overall yields of the Dim Sum bond market tightened marginally in the third quarter. The yield tightening was less than for Asian dollar credit indices such as the JP Morgan Asia Credit Index.

The adverse demand-supply situation has caused the Dim Sum market to underperform the Asian dollar bond markets, said Standard Chartered, and the lack of strong yuan appreciation means the situation is likely to continue for a while.

"The stagnation in yuan deposit growth in Hong Kong has clearly weakened demand for Dim Sum bonds, even while issuance has soared," it said.

【1】 【2】


News we recommend:
China, US battle over auto parts New Silk Road future of trans-Eurasian freight Islands 'purchase' hurts major industry sectors
Global mobile brands find lines busy in China Tough times in the bicycle rental business Gearing up for knowledge economy
Revitalizing China's gloomy exports  New hurdle for Japan's carmakers Secrets of a successful PE firm

Email|Print|Comments(Editor:厉振羽、张洪宇)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Female pilots of FBC-1 fighters in training

  2. David Blaine completes "Electrified" stunt

  3. Ice train begins trial operations

  4. Top 8 October destinations in China

  5. Witness miracles!LuChen in South Korea

  6. Fascination China

Most Popular

Opinions

  1. Allure of literature prize strong for China
  2. New road rule marks first step to orderly society
  3. Romney's post-debate bounce could soon fade
  4. War with Syria would be great mistake for Turkey
  5. Why being a runt can be an advantage
  6. Govt aid needed for solar firms to survive
  7. Chavez expected to boost China links
  8. Can US ‘enjoy the downward slide?’
  9. Editorial: Protectionism harmful
  10. US attack of Chinese autos baseless

What's happening in China

Sperm black market

  1. Fairer income distribution hoped for in new policy
  2. Breaking road rules gets more costly
  3. 6-year-old dies after being forced to run for hours
  4. Man accuses doctors in disappearance of kidney
  5. Air China flights in hoax call incidents

China Features

  1. Oregon official: We welcome Chinese investors
  2. Mid-Autumn Festival Keywords
  3. Culture invasion? Starbucks kisses Buddha
  4. Public should enjoy more 'tourism benefits'
  5. Ancient villages face losing their souls

PD Online Data

  1. Ministry of Water Resources
  2. Ministry of Railways
  3. People's Bank of China
  4. Ministry of Health
  5. Ministry of Culture