HK, other off-shore RMB centers 'cooperative'

HONG KONG - With different but irreplaceable advantages, Hong Kong and other off-shore renminbi center can build a "cooperative and supplementary rather than competitive" relationship, experts from the Chinese mainland, Hong Kong and Taiwan agreed on Thursday.

Participating in a discussion in the third economic forum for mainland, Hong Kong and Taiwan, Chief Executive of the Hong Kong Monetary Authority Norman Chan said with more than two decades of growth, Hong Kong has become the world largest offshore RMB center. More recently, Taipei, Singapore, London and Sidney are developing their own RMB businesses.

"The relationship between Hong Kong and other offshore RMB centers is cooperative and supplementary rather than competitive," he argued.

Echoed with Chan's comment, Jin Zhongxia, head of the research institute of the People's Bank of China, believed Hong Kong has its own irreplaceable advantages as the offshore RMB center.

Bridging between the mainland and the world, Hong Kong is the ideal platform for enterprises wishing to enter the market of the other side. Besides, Hong Kong has mature financial infrastructure, talented professionals, well-established legal systems, and more importantly, support from the central government. All these advantages guarantee the city broader development space of RMB business, Jin said.

Meanwhile, he said other offshore RMB centers, such as Taiwan, Singapore and London, could serve its special role respectively.

"Taiwan and the mainland have large trade volume; Singapore has its advantage in East Asia market; located in the western hemisphere, London could become the platform where RMB enters into the Middle East and African," he added.

According to Li Shude, chairman of the Taiwan stock exchange, the trade volume between Taiwan and the mainland mounted to nearly $170 billion last year. Using RMB as the settlement currency can reduce substantial cost for enterprises, therefore enhance their competitiveness.

Li believed financial deregulation, information transparency and diversified financial products are substantial to the modernization of financial market.

"Taiwan and the mainland need cooperate more on financial services in order to serve the real economies," he said, adding that Taiwan could learn from Hong Kong the useful experiences of RMB business so as to improve its own performances.

Themed "New Economic Opportunities for Greater China", the forum aimed at promoting economic and financial ties among the Chinese mainland, Hong Kong and Taiwan, and providing an efficient platform for representatives from the three regions to exchange ideas.