The internationalization of the RMB has become one of the most talked-about topics in the global financial community. It is closely linked to China’s ongoing financial reforms and its long-term economic development over the next decade and beyond. At the “2013 First Financial (Hong Kong) Financial Summit,†experts from Hong Kong and other regions gathered to discuss this critical issue, sharing insights and reaching a general consensus: while challenges remain on the path to RMB internationalization, opportunities are even more abundant.
**First Financial Daily: What is the biggest challenge for the RMB to become an international currency?**
**Xie Yonghai**, Chairman of BOC International Prudential Asset Management Co., Ltd., explained that for the RMB to be truly international, it must be freely convertible and allow free inflows and outflows. For China, the main challenge lies in opening up its capital market and enabling the RMB to flow more freely. This involves maintaining financial security, which the government has been working on through pilot projects in places like Shenzhen Qianhai and Shanghai. Qianhai, in particular, is a national-level trial platform designed to test cross-border RMB flows. The key challenge now is to conduct these experiments effectively and find a sustainable path forward.
**Daily: Why hasn’t Hong Kong, as the world's largest offshore RMB center, 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, but this is still relatively small compared to mainland M2. The slow growth since 2011 highlights the issue: limited avenues for RMB to leave Hong Kong. To boost the offshore RMB market, Hong Kong should create more ways for RMB to circulate, such as offering credit to mainland enterprises. This would help Hong Kong banks generate profits and encourage more RMB to stay in the territory, benefiting both the mainland and Hong Kong in the long run.
**Daily: What factors are holding back the return of the RMB to the mainland?**
**Shi Jingquan**, Deputy Director and Head of Research Department at the Hong Kong Economic Times, pointed to the A-share market as a key example. He suggested that stricter shareholding restrictions on major shareholders—such as extending the lock-up period from two years to 20 years—could help stabilize the market. Many successful family businesses in Hong Kong operate with long-term vision, and the A-share market should follow a similar model. Only by improving regulation and opening up capital can the RMB make a meaningful return.
**Daily: How does product innovation play a role in the RMB’s internationalization? What trials are worth exploring?**
**Ji Feng**, Chairman of the Hong Kong Chinese Securities Association and Guotai Junan International, highlighted that as mainland companies expand into Hong Kong, there are many opportunities for RMB-related business development. Recently, Guo Shuqing, head of the China Securities Regulatory Commission, emphasized the need to expand the RQFII program by increasing investor participation and enriching product offerings. These steps are essential to support the broader goal of RMB internationalization.
**Daily: What new opportunities does the RMB’s internationalization bring to institutional investors?**
**Lin Yong**, CEO of Haitong International, said that previously, the opportunities were one-sided—mainland institutions went abroad for financing, and Hong Kong-based firms acted as underwriters or transaction facilitators. Now, with policy reforms underway, China’s capital market is becoming more open. Financial institutions have greater flexibility to innovate and explore new areas, creating a more dynamic and diverse investment landscape.
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