The Hong Kong Monetary Authority (HKMA) has disclosed that the People's Bank of China (PBoC) has announced that eligible institutions outside the Mainland can take part in a pilot scheme to make use of their renminbi (RMB) funds to invest in the Mainland's interbank bond market.
The Hong Kong Monetary Authority (HKMA) welcomed the scheme, under which banks participating in RMB business in Hong Kong can conduct trading in the Mainland's interbank bond market upon approval by the PBoC. The HKMA will liaise closely with the PBoC on the implementation of the scheme, and will issue a circular to authorised institutions on this matter.
The Chief Executive of the HKMA, Norman Chan, said: "The launch of the scheme has opened up a channel for RMB funds and financial institutions in Hong Kong to invest in the Mainland. This will further promote the development of RMB trade settlement in Hong Kong, and enhance the attractiveness of RMB offshore business in Hong Kong."
Furthermore, under the scheme, central banks and monetary authorities outside the Mainland can also invest in the Mainland's interbank bond market. In this regard, Chan said that "the HKMA welcomes the new arrangement and will follow up with the PBoC accordingly."
A comprehensive report in our Intelligence Report series giving a country-by-country analysis of offshore investment funds, stock exchanges and trusts, with an analysis of the US QI regime, is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report9.aspTags: offshore | investment | business | capital markets | China | Hong Kong | currency | Hong Kong | China
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