Latest News:  


Greater yuan usage urged in China-Middle East transactions

By Oswald Chan in Hong Kong (China Daily)

08:42, January 23, 2013

Greater yuan currency usage in bilateral transactions will provide further impetus for trade and investment links between China and the Middle East resulting in benefits for both sides, Hong Kong Monetary Authority Chief Executive Norman Chan said.

Trade activities between the United Arab Emirates and China have grown more than 10 times over the past decade, from less than $3 billion in 2001 to $37 billion in 2011. China is the UAE's second-largest non-oil trading partner and the second-largest source of UAE's imports, Chan said.

He made this remark on Monday at a seminar in Dubai as part of the authority's overseas roadshows to promote Hong Kong as an offshore yuan business center.

According to the authority, Chinese exports to the Middle East countries jumped to $47 billion in 2011 from $18 billion in 2006; while its imports from the Middle East nations soared to $87 billion from $27 billion in 2006.

"As yuan internationalization progresses, the rapidly expanding offshore yuan market and greater access to the onshore yuan market are also providing opportunities for the public and private asset managers in the Middle East to diversify and enhance their portfolio investments," Chan added.

According to the authority's data, China has made outbound direct investment of $301 million in UAE in 2011, a 10-fold increase in the last five years. And China is also diversifying its investment in the UAE, putting more money into the nation's telecom and construction sectors. UAE also possesses one of the world's largest fiscal reserves - as its sovereign wealth fund is estimated to reach $800 billion.

The central banks of China and the UAE are strengthening bilateral financial cooperation. The People's Bank of China and the Central Bank of UAE signed a currency swap agreement in January 2012, which allows a currency swap size of 35 billion yuan for a tenor of three years.

Releasing the latest offshore yuan financial business figures in Hong Kong, the authority said the yuan trade settlement transactions handled by banks in Hong Kong registered some 30 percent growth and exceeded the 2.6 trillion yuan mark in 2012. The Hong Kong Renminbi Real Time Gross Settlement system is handling a growing volume of cross-border and offshore transactions, with average daily turnover amounting to some 260 billion yuan recently compared to 5 billion yuan in 2010.

Regarding other yuan-denominated financing activities, size of yuan-denominated dim-sum bond issuance grew 60 percent to 230 billion yuan in 2012.

Hong Kong possesses the world's largest yuan liquidity pool outside the mainland-as the city's yuan deposits and certificates of deposits totaled 700 billion yuan in 2012, registering a 5 percent growth compared to 2011 and a 10 times surge compared to 2009.

[email protected]

We recommend:

Report on the rich in China released

Sales boosting measures for Spring Festival

1st express sleeper train starts operation

Top 10 most transparent multinational companies

Top Ten Economic Events in 2012

Beijing leads nation on rich list


Related Reading

Leave your comment0 comments

  1. Name


Selections for you

  1. Fighters in combat readiness cruise

  2. WZ-10 armed helicopters in training

  3. Unforgettable moments you cannot miss in Jan.

  4. Uncover the myth of 'devil training'

  5. Space centers around world

  6. China’s weekly story (2013.01.09-01.19)

  7. 'Cloud Atlas' releases ultimate Chinese trailer

  8. Wider coverage for public cultural services

  9. Sinopec aims to sweeten energy supply

  10. Zhao Wei graces Marie Claire magazine

Most Popular


  1. Global governance in a changing world
  2. Obama's second term brings new opportunities
  3. Happy Indian mentality keeps on rising
  4. Consumption cannot be only driver
  5. China to stick to own path in maritime exploration
  6. Learning the language of affection
  7. Don't buy a house before 35 years old?
  8. Anti-pollution plan gets mixed reviews
  9. Emotional abuse to child cannot be neglected
  10. US' dangerous stance

What’s happening in China

This is the most real, most helpless and most motivate life expense of Beijing!

  1. Shanghai to reward food safety informers
  2. Beijing vows more efforts to improve air quality
  3. Sanitation workers win pay raise after protest
  4. Woman in sex videotape accuses official of rape
  5. Chinese authorities ban 55 TV ads