Download or read book Development of the Renminbi Market in Hong Kong SAR written by Mr.R. Sean Craig and published by International Monetary Fund. This book was released on 2013-12-24 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Offshore use of the renminbi expanded rapidly in Hong Kong SAR as China sought to develop an international role for its currency while maintaining capital controls. This prompts two questions addressed in this paper: How far advanced is renminbi internationalization? And, what role does Chinese capital account liberalization play? The first is addressed by testing the extent of integration of offshore and onshore markets for the renminbi using a Threshold Autoregression (TAR) model and finds that there are substantial unexploited arbitrage opportunities. A VAR model is used to indentify factors contributing to this limited market integration and finds that capital controls and shifts in global market sentiment explain much of the divergence in onshore and offshore renminbi exchange rates. To address the second question, the paper shows how capital account measures have been used to promote offshore use of the renminbi more actively in the wake of the global financial crisis, but that this was done asymmetrically with controls on inflows eased to a greater extent than on outflows. It concludes that a more balanced liberalization process will sustain progress in renminbi internationalization.
Download or read book Development of the Renminbi Market in Hong Kong SARR written by R. Sean Craig and published by . This book was released on 2013 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Offshore Renminbi written by Robert Minikin and published by John Wiley & Sons. This book was released on 2012-10-26 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt: The rise of the renminbi and what it means for forex markets Chinese authorities have ambitious plans to "internationalize" the renminbi, transforming it from a tightly controlled domestic legal tender into a global currency for international trade, held by both private and public sector asset managers. The Offshore Renminbi examines this impending currency revolution, outlining why the emergence of China as a major economic power will likely soon be matched by a transformation of the renminbi's role in the global financial system. It explains how new markets for "offshore" renminbi are developing outside mainland China since the country is not yet ready to fully open up its economy to international capital flows, and the regulations that govern them. The potential growth for the renminbi market is vast, thanks to China's role in the global trading community. The early stages of the internationalization effort were small-scale, but momentum has greatly increased over the past 18 months, making this book more relevant than ever. These developments offer new opportunities (and challenges) for corporate treasurers and investors, as China's profound economic success and growing prominence in global trade may transform offshore renminbi into a new global reserve currency and a legitimate competitor to the U.S. dollar. Explores how the "internationalization" of the renminbi is likely to yield a new global currency to rival the U.S. dollar Examines "offshore" renminbi and the host of new financial markets they have created, from a spot FX market to Dim Sum bonds in Hong Kong Covers broad themes of interest to general readers and policymakers, as well as more detailed issues of practical and direct importance to corporate treasurers and investors The Chinese government has ambitious plans to make the renminbi a global currency. The Offshore Renminbi explains the complexities of this strategy and the dramatic implications for the global FX markets.
Download or read book One Currency Two Markets written by Chang Shu and published by . This book was released on 2014 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Renminbi Trade Settlement as a Catalyst to Hong Kong s Development as an Offshore Renminbi Center written by Eiichi Sekine and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Renminbi settlement has become the preferred mode of settlement for mainland Chinese imports, with most of the imports settled this way coming from Hong Kong. As a result, renminbi deposits in Hong Kong have increased sharply, as has the issuance of dim sum bonds. It will be interesting to see what routes are opened up to enable this money to find its way back from Hong Kong's offshore renminbi market to the mainland and whether Japanese companies take advantage of the market to issue dim sum bonds.
Download or read book Offshore Renminbi Forward Market Development and Its Implication for the Currency Internationalization Process written by Wang, Xi (S.M.) and published by . This book was released on 2015 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: China has become the second-largest economy by nominal GDP and the world's largest economy after adjusting purchasing power by the end of 20141. Meanwhile, China is also the largest trading nation in the world. Since the late 2000s, the People's Bank of China (PBoC) has sought to internationalize the renminbi, the official currency of China, to improve the international use of the renminbi and in turn to stimulate monetary efficiency. The offshore renminbi market officially launched in Hong Kong SAR in July 2010 and the offshore deliverable forward market was established two months later. This paper aims to provide a detailed review of the renminbi internationalization process, particularly the foreign exchange market, including the deliverable forward market in the offshore setting. The review will test the correlations among the onshore deliverable forwards, the offshore deliverable forwards, and non-deliverable forwards by conducting time-series analyses. Moreover, interest rate parity theory is utilized to price the theoretical offshore deliverable forwards. Substantial deviations are observed and documented between the theoretical and actual offshore deliverable forward rates. Furthermore, regression analyses are adopted to provide empirical evidence to explain the possible reasons affecting the prices of the offshore renminbi deliverable forwards and the onshore deliverable forwards, also, the price differential between these two products. Among these reasons, exchange rate expectation, macroeconomic sentiment and market liquidity show statistically significant impact. Finally, the paper will discuss the possible implications of the preceding analyses for the development of the offshore deliverable forward market and the renminbi internationalization process.
Download or read book RMB Internationalization written by Samar Maziad and published by International Monetary Fund. This book was released on 2012-05-01 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: Among emerging market currencies, the RMB holds the most potential to become widely used internationally, due to China‘s large economic size, diversified trade structure and network, macroeconomic stability, and high growth rates - both current and expected. Yet, foreign access to RMB-denominated assets that could act as global stores of value remains limited due to extensive restrictions on capitals flows. At the same time, the rapid expansion of RMB trade settlement and issuance of RMB-denominated bonds by the Chinese government and corporates in Hong Kong, SAR have created some feedback channels across onshore (CNY) and offshore (CNH) RMB markets. We employed a bivariate GARCH model to understand the inter-linkages between onshore and offshore markets and found that, while developments in the onshore spot market exert an influence on the offshore spot market, offshore forward rates have a predictive impact on onshore forward rates. We also find evidence of volatility spillovers between two markets. Overtime, those spillover channels would be expected to grow as the offshore market further develops.
Download or read book The Bond Market in Hong Kong China written by Asian Development Bank and published by Asian Development Bank. This book was released on 2020-09-01 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report provides updates on the bond market in Hong Kong, China since the publication of the ASEAN+3 Bond Market Guide 2016: Hong Kong, China. It also highlights those changes and developments that have a connection to the bond market of the People’s Republic of China. The ASEAN+3 Bond Market Guide series provides member-specific information on the investment climate, rules, laws, opportunities, and characteristics of local bond markets in Asia and the Pacific. It aims to help bond market issuers, investors, and financial intermediaries understand the local context and to encourage greater participation in the region’s rapidly developing bond markets.
Download or read book People s Republic of China Hong Kong Special Administrative Region Selected Issues and Statistical Appendix written by and published by . This book was released on 2005 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Hong Kong SAR Monetary and Exchange Rate Challenges written by C. Schenk and published by Palgrave MacMillan. This book was released on 2009 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hong Kong SAR is now highly unusual as a large economy running a currency board system that pegs the Hong Kong Dollar to the US Dollar. While usually credited with providing stability and prosperity for Hong Kong, the system has become controversial since the decline of the US Dollar since 2002 and the adoption of a flexible basket peg system for the Renminbi in 2005. Why was this system adopted in the first place? Why did Hong Kong go back to a currency board in 1983 after a decade of floating exchange rates? This volume explores the origins and persistence of the system in the context of the long term monetary integration with mainland China and presents the viewpoint of several of those involved in the restoration of the currency board system in 1983. It also explains the changes made since the 1990s and looks to Hong Kong's future prospects.
Download or read book Renminbi Derivatives written by Wensheng Peng and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study reviews the developments in the onshore and offshore renminbi derivatives markets. The onshore market has seen a rapid build-up in the market infrastructure and price discovery mechanism in the past year, with empirical evidence suggesting that its pricing is increasingly determined by financial fundamentals, such as the covered interest rate parity. However, the growth of the market has been restrained by restrictions on the participant base, limited variations in the RMB/US$ exchange rate, market participants' lack of technical capacity and experience, and inadequate supporting financial market infrastructure. The non-deliverable forward (NDF) market, concentrated in Hong Kong and Singapore, is more developed, but has the drawback that its pricing is not tied to financial fundamentals. The comparison between onshore and offshore markets suggests that two issues are of particular importance for future derivatives market development in China: the balance between regulation and development, and the relationship between onshore and offshore markets.
Download or read book An Empirical Examination of Factors Driving the Offshore Renminbi Market written by Richard C. K. Burdekin and published by . This book was released on 2016 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Following the 2010 establishment of the offshore renminbi market in Hong Kong, renminbi deposits there quickly rose above RMB 1 trillion. In this paper we examine fluctuations between the offshore value of the renminbi in Hong Kong and its onshore value in mainland China. The size of the spot market spread appears to be influenced by stock market sentiment as reflected in the spread between A-share listed in Shanghai and H-shares listed in Hong Kong. There is also some evidence of a link between the spread and the pace of renminbi deposit growth in Hong Kong.
Download or read book One Currency Two Markets written by Edwin L.-C. Lai and published by Cambridge University Press. This book was released on 2021-07-08 with total page 347 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic analysis of the future of the international monetary system and the USD, and the rising importance of the RMB.
Download or read book The Connecting Dots of China s Renminbi Strategy written by Paola Subacchi and published by . This book was released on 2012 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: China's attempts to internationalize the renminbi (RMB) have significant implications for the international monetary system and for economies across the world. China's RMB strategy is based on two tracks: the use of the RMB in cross-border trade settlement and the creation of an RMB offshore market. A series of policy measures has been introduced since 2009 to facilitate the expansion of the nascent RMB offshore market and to overcome the constraints of the currency's limited convertibility. Development of the offshore market depends on the supply of liquidity provided by Beijing. At present this market is limited in both size and scope, and funds flow from and to the Mainland mainly through the intermediation of Hong Kong. Hong Kong benefits from being the first mover and from being part of China, but with a separate legal and institutional system. For the time being it will continue to be the main conduit to the onshore market. Offshore centres such as Hong Kong and offshore hubs such as London and Singapore are both complementary and essential to China's RMB strategy. They are the connecting dots in the expanding RMB offshore market.
Download or read book Why Complementarity Matters for Stability Hong Kong SAR and Singapore as Asian Financial Centers written by Mrs.Vanessa Le Lesle and published by International Monetary Fund. This book was released on 2014-07-08 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is much speculation regarding a “race for dominance” among financial centers in Asia, arising from the anticipated financial opening up of China. This frame of reference is, to an extent, a predilection that results from a traditional understanding of financial centers as possessing historical, geographic, and scale economy advantages. This paper, however, suggests that there is an alternative prism through which the evolution of financial centers in Asia needs to be viewed. It underscores the importance of “complementarity” rather than “dominance” to better serve regional and global financial stability. We posit that such complementarity is vital, through network analysis of the roles of Hong Kong SAR and Singapore as the current leading financial centers in the region. This analysis suggests that a competition for dominance can result in de-stabilizing levels of interconnectivity that render the global “network” as a whole more susceptible to rapid propagation of shocks. We then examine the regulatory and policy challenges that may be encountered in furthering such complementary coexistence.
Download or read book Capitalism with Chinese Characteristics written by Yasheng Huang and published by Cambridge University Press. This book was released on 2008-09-01 with total page 560 pages. Available in PDF, EPUB and Kindle. Book excerpt: Presents a story of two Chinas – an entrepreneurial rural China and a state-controlled urban China. In the 1980s, rural China gained the upper hand. In the 1990s, urban China triumphed. In the 1990s, the Chinese state reversed many of its rural experiments, with long-lasting damage to the economy and society. A weak financial sector, income disparity, rising illiteracy, productivity slowdowns, and reduced personal income growth are the product of the capitalism with Chinese characteristics of the 1990s and beyond. While GDP grew quickly in both decades, the welfare implications of growth differed substantially. The book uses the emerging Indian miracle to debunk the widespread notion that democracy is automatically anti-growth. As the country marked its 30th anniversary of reforms in 2008, China faces some of its toughest economic challenges and substantial vulnerabilities that require fundamental institutional reforms.
Download or read book Hong Kong s Growth Synchronization with China and the U S written by Mr.Dong He and published by International Monetary Fund. This book was released on 2017-07-08 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the synchronization of Hong Kong SAR’s economic growth with mainland China and the United States. This paper identifies trends of economic growth based on the permanent income hypothesis. Specifically, the paper confirms whether real consumption in Hong Kong SAR and mainland China satisfy the permanent income hypothesis, at least in a weak form. It then identifies the permanent and transitory components of income of each economy using a simple state-space model. It uses structural vector autoregression models to analyze how permanent and transitory shocks originating from mainland China and the United States affect the Hong Kong economy, and how such influences evolve over time. The paper’s main findings suggest that transitory shocks from the United States remain a major driving force behind Hong Kong SAR’s business cycle fluctuations. On the other hand, permanent shocks from mainland China have a larger impact on Hong Kong SAR’s trend growth.
