Standard Chartered: RMB Global Use Has Room to Grow, HK Can Play Unique Role
SingTao · 2 SOURCES1 day ago2 MIN
Summary
Standard Chartered's Greater China and North Asia Chief Executive Funa Huen Yiu-wai said at the Belt and Road Summit that as China expands its global investment, trade and financial connections, the renminbi's international application still has significant room for growth. Hong Kong, home to the world's largest offshore renminbi liquidity pool and backed by the mainland's continued opening-up and regulatory support, is well-positioned to play a unique role in channeling renminbi liquidity to markets where mainland enterprises are actively expanding. Funa Huen noted that Central Asia represents a key opportunity area, with bilateral trade already substantial but with considerable untapped potential.
Key Points
- Hong Kong possesses the world's largest offshore renminbi pool, with infrastructure, cross-border connectivity and product diversity continuously strengthening
- China currently accounts for 19 percent of Central Asia's exports and 31 percent of its imports, indicating strong trade flow potential yet to be fully realized
- Cross-border renminbi usage between China and the five Central Asian nations grew an average of 59 percent annually from 2020 to 2024
- Kazakhstan enterprises have issued dim sum bonds in Hong Kong, while the Kazakh government subsequently issued sovereign panda bonds, demonstrating use of both offshore and onshore renminbi markets
- RMB trade settlement between Central Asia and China is growing at over 50 percent annually, with speakers suggesting focus on developing inter-market financial infrastructure
Why It Matters
Hong Kong's role as an offshore renminbi center directly supports the Belt and Road Initiative's practical implementation, channeling capital flows to developing markets while meeting growing corporate demand for renminbi-denominated financing and settlement solutions. As mainland enterprises globalize and seek more robust currency allocations in trade and investment, Hong Kong's financial infrastructure positions it as an indispensable gateway between renminbi liquidity and Belt and Road markets .
Hong Kong's role as an offshore renminbi center directly supports the Belt and Road Initiative's practical implementation, channeling capital flows to developing markets while meeting growing corporate demand for renminbi-denominated financing and settlement solutions. As mainland enterprises globalize and seek more robust currency allocations in trade and investment, Hong Kong's financial infrastructure positions it as an indispensable gateway between renminbi liquidity and Belt and Road markets .