Market refers to the market outside the mainland of China for the development of denominated financial products;
It helps to improve the efficiency and liquidity of overseas transactions in renminbi, and reduces the risk of investors making overseas payments in renminbi.
So far, there are many offshore centers in Hong Kong, Canada, Western Australia, London, Singapore, Paris, Luxembourg, Frankfurt, Seoul and so on. There are also new RMB offshore centers that are developing cooperation.
The People’s Bank of China supports the establishment in Hong Kong.
The People’s Bank of China is also studying the possibility of establishing an offshore yuan market in Shanghai.
Before RMB is fully convertible, there should be a trading market for RMB flowing out of the country, so as to promote and ensure the development of RMB trade settlement.
