HKMA says to expand yuan trade scheme to more firms

BEIJING, Nov 30 (BestGrowthStock) – Hong Kong will significantly
increase the number of firms that can use yuan to pay for
imports and exports, Hong Kong Monetary Authority Chief
Executive Norman Chan said on Tuesday.

“The number of enterprises in the pilot (yuan trade
settlement) scheme will be greatly increased from the current
number of 300 and the final list will be released very soon,”
Chan told reporters at a briefing in Beijing after a meeting
with the Chinese central bank.

The HKMA and the People’s Bank of China also discussed what
quota will be allocated for clearing yuan trade transactions in
Hong Kong next year, Chan said.

He did not say whether the quota would be increased next
year, but said that he hoped the new level would meet the
increasing demand for yuan from Hong Kong firms.

The HKMA said in October that Bank of China (Hong Kong), the
sole lender authorised to clear yuan trades with the mainland,
had used up its full-year 8 billion yuan quota. [ID:nSGE69S0FE]

Chan said the quota had been used up this year because of
trade-based demand, not speculative investment.

Chinese media has reported that the central bank believes
some investors have used yuan obtained through the quota to
invest in higher-yielding assets on the mainland, and may thus
be unwilling to expand the ceiling next year.
(Reporting by Shen Yan, Aileen Wang and Simon Rabinovitch;
Editing by Ruth Pitchford)

HKMA says to expand yuan trade scheme to more firms