In order to better circulate and complete the transactions of RMB flowing out of the country, and make the economic exchanges between China and other countries more convenient and mature, the offshore RMB market came into being. At present, the largest offshore RMB center in the world is Hong Kong, where there are the richest offshore RMB products in the world.
In the past, RMB settlement of cross-border trade was carried out under capital account, and RMB could not be fully convertible. Renminbi flowing abroad through trade cannot enter the domestic capital market.
In this case, in order to develop RMB trade settlement, it is necessary to solve the circulation and transaction problems of RMB flowing out of the country, so that enterprises holding RMB can melt out of RMB, enterprises needing RMB can integrate into RMB, and enterprises holding RMB can get corresponding benefits. This requires developing offshore RMB market and allowing RMB flowing out of the country to trade in the offshore RMB market. So that overseas enterprises holding RMB can finance, trade and make profits in this market.
Generally speaking, in the formation stage of offshore RMB market, there are more than RMB 1000 billion in Hong Kong market, mainly held by individuals. The initial driving force is the expectation of RMB appreciation, and the investment products are a few fixed-rate products such as deposits, government bonds, insurance and funds. With the gradual opening of the channel for Hong Kong RMB to return to the mainland, income has become the main driving force for holding RMB. So far, it can be said that the offshore RMB market in Hong Kong has begun to take shape.
2065438+On June 8, 2006, the central bank announced that from June 25, 2006, the normal deposit reserve ratio policy will be implemented for the deposits of overseas financial institutions in domestic financial institutions (referred to as offshore RMB). The central bank explained that overseas financial institutions do not include official reserve management institutions such as overseas central banks (monetary authorities), international financial organizations, sovereign wealth funds and other overseas central bank institutions.