HK's RMB Pilot Plan Covers 400 Mainland Enterprises

About 400 enterprises in the Chinese mainland had been selected to participate in the Renminbi cross-border trade settlement pilot program, Under Secretary for Financial Services and the Treasury of Hong Kong Julia Leung said  Saturday.

Speaking on a radio talk show here Saturday, Leung said enterprises in Hong Kong would soon be able to settle trades in Renminbi through the banks with the selected companies in the Chinese mainland.

Noting the program can reduce the risks and cost arising from fluctuations in exchange rates, she said Hong Kong banks could expand extensively their Renminbi services from individual clients to enterprises.

When asked whether the scheme includes trade financing, Leung said authorities in the Chinese mainland would announce the details soon.

The Monetary Authority has made full preparation for the program including conducting tests on the Renminbi clearing system, Leung noted, adding that the system can start operation once the Chinese mainland comes up with the operational details.

When asked whether the Hong Kong Special Administrative Region (HKSAR) government would change Hong Kong's linked exchange rate with the U.S. dollar, the under secretary said the system had been working effectively and the HKSAR government had no plan to change it.

Source: CRIEnglish