The internationalization of the Renminbi (RMB) has become one of the most talked-about topics in the global financial community. It is closely tied to China’s ongoing financial reforms and its long-term economic development over the next decade or more. At the “2013 First Financial (Hong Kong) Financial Summit,†experts from Hong Kong and beyond gathered to discuss this critical issue. They agreed that while challenges remain, the opportunities for RMB internationalization are significant.
First Financial Daily asked: What is the biggest challenge for the RMB to achieve international status?
Xie Yonghai, Chairman of BOC International Prudential Asset Management Co., Ltd., explained that for the RMB to be an international currency, it must be fully convertible and freely tradable. The main challenge for China lies in opening up its capital markets and allowing the RMB to flow in and out without restrictions. This involves ensuring financial stability. The government has been working on this, especially in areas like Shenzhen Qianhai and Shanghai. Qianhai, in particular, serves as a national pilot zone for financial openness, testing cross-border RMB flows. The key challenge now is conducting these experiments and finding a sustainable path forward.
The Daily then asked why Hong Kong, as the world's largest offshore RMB center, hasn't seen the expected growth in RMB deposits.
Lei Dingming, Director of Economics at the Hong Kong University of Science and Technology, noted that Hong Kong’s RMB deposit volume reached about 570 billion yuan, which is only 0.6% of mainland M2. While it has grown significantly since 2009, the pace has slowed since 2011. He suggested that the problem lies in the limited ways for RMB to return to the mainland. If Hong Kong can provide better channels for RMB to flow back—such as offering credit to mainland enterprises—banks there could profit more, encouraging more RMB to stay in Hong Kong. This would benefit both the Chinese financial system and Hong Kong’s long-term economic health.
Another question was raised: What factors are preventing the RMB from returning to the mainland?
Shi Jingquan, Deputy Director and Head of Research at Hong Kong Economic Times, pointed to the A-share market as an example. He argued that stricter regulations on major shareholders—like extending the lock-up period from two years to 20 years—could help. This would give major shareholders more incentive to invest long-term, similar to how many family-owned businesses in Hong Kong operate. By making the A-share market more attractive and stable, the RMB could gain more traction in the domestic market.
The Daily also asked about product innovation in the RMB internationalization process.
Ji Feng, Chairman of the Hong Kong Chinese Securities Association and Guotai Junan International, highlighted that with mainland companies entering Hong Kong, there are many new business opportunities emerging. Recently, Guo Shuqing, chairman of the China Securities Regulatory Commission, emphasized expanding the RQFII program to include more investors and enrich the range of products available under the framework.
Finally, the Daily questioned what new opportunities the RMB internationalization brings for institutional investors.
Lin Yong, CEO of Haitong International, said that previously, opportunities were one-way—mainland institutions went abroad for financing, and Hong Kong firms acted as underwriters. Now, with policy reforms and a more open capital market, all financial institutions have greater room for creativity and innovation. This shift opens up new possibilities for growth and collaboration across borders.
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