Offshore Renminbi - The Rise of the Chinese Currency and Its Global Future

Informationen zum Autor Robert Minikin is the Senior Foreign Exchange Strategist with Standard Chartered Bank, Hong Kong. He is a member of the Global Foreign Exchange Strategy team focusing on Northeast Asia FX, with a particular emphasis on "CNH," the new Chinese yuan (CNY) offshore market in Hong Kong. He is a well known commentator on financial market development who is regularly featured both in the print and broadcast media. Mr. Minikin has more than twenty years of experience in financial market analysis. He holds first and second degrees in economics from the University of London. Kelvin Lau is a Hong Kong?based economist covering Greater China, specialising in Hong Kong and the Pearl River Delta in Southern China. Kelvin joined Standard Chartered Bank as an economist in September 2000 and is currently a member of the Greater China research team. With a focus on Hong Kong and the Pearl River Delta (PRD) region in Sourthern China, Kelvin provides macroeconomic analysis and on-the-ground views of major economic issues. His views are quoted by various international as well as local media. He holds a degree in economics from the London School of Economics and Political Science. Klappentext The rise of the renminbi and what it means for forex marketsChinese 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 investorsThe 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. Zusammenfassung 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. Inhaltsverzeichnis Foreword ix Preface xiii List of Acronyms and Key Terms xvii CHAPTER 1 The New Global Role for the Renminbi 1 A Longstanding-but Failing-Path 4 Allowing Renminbi Markets to Flourish 9 Political Tailwinds for Internationalisation 13 Challenges and Consolidation Risks 19 The Renminbi in a Multipolar World 23 CHAPTER 2...

List of contents

Foreword ix
 
Preface xiii
 
List of Acronyms and Key Terms xvii
 
CHAPTER 1 The New Global Role for the Renminbi 1
 
A Longstanding--but Failing--Path 4
 
Allowing Renminbi Markets to Flourish 9
 
Political Tailwinds for Internationalisation 13
 
Challenges and Consolidation Risks 19
 
The Renminbi in a Multipolar World 23
 
CHAPTER 2 Linking the Offshore and the Onshore Renminbi Markets 25
 
International Transactions in a Domestic Currency 25
 
The Starting Point for Renminbi Internationalisation 31
 
Investability: Opportunities and Challenges 40
 
Timing Convertibility 45
 
PBoC and Exchange Rate Policy 50
 
The Advantages of the Offshore Renminbi 53
 
CHAPTER 3 The Birth and Evolution of the Offshore Renminbi Market in Hong Kong 57
 
A Chronological Look at Key Policy Liberalisations 59
 
More on Renminbi Trade Settlement in the Post-Big Bang Era 79
 
From Renminbi Trade Settlement to Offshore Renminbi Deposits 93
 
CHAPTER 4 New Markets--New Jargon, New Opportunities 101
 
The Chinese Yuan in FX Spot 101
 
A New Diversity of Forward Markets 109
 
Opportunities in the CNH Markets 112
 
Tracking Returns in CNH Deposits 121
 
The Dim Sum Bond Market Matures 126
 
CHAPTER 5 Geographical Expansion of the Offshore Renminbi Universe 131
 
From Hong Kong to Haiwai through Trade 133
 
Renminbi in London and the Hub-and-Spokes Model 139
 
Direct Renminbi Cooperation with Mainland China 142
 
Shanghai's Aspiration and Infrastructure Overhaul 147
 
Hong Kong Is Still in Pole Position 151
 
CHAPTER 6 Drivers for Internationalisation 163
 
Public Policy: "Replacing" USD 168
 
Economics: China's Role in the Global Economy 174
 
For Investors: Appreciation--but, More Importantly, Diversification 178
 
For Corporations: Fairer and More Transparent Pricing 182
 
For Official Reserve Managers: A New Route to Stability? 187
 
CHAPTER 7 The Rise of the Renminbi and Its Policy Implications 193
 
The Renminbi's Rise: A Threat to the Hong Kong Dollar? 193
 
The Renminbi's Rise: A Regional FX Anchor 198
 
The Renminbi's Rise: The SDR and the IMF 206
 
The Renminbi's Rise: The US Dollar in a Multipolar World 213
 
Afterword: The Life Overseas with the Rising Renminbi 217
 
Appendix: The CNH Timeline 223
 
Bibliography 229
 
About the Authors 231
 
Index 233

Product details

• Authors: Kelvin Lau, Kelvin Minikin Lau, Lau Kelvin, R Minikin, Rober Minikin, Robert Minikin, Robert Lau Minikin, Minikin Robert
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 04.01.2013
• EAN: 9781118339251
• ISBN: 978-1-118-33925-1
• No. of pages: 275
• Subjects: Social sciences, law, business > Business > Management; Volkswirtschaftslehre, Economics, finanzprodukte, Finance & Investments, Finanz- u. Anlagewesen, Financial Products, Internationale Ökonomie u. internationaler Handel, International Economics & Trade