.contact us |.about us
News > Business News ...
Search:
    Advertisement
HK banks, retailers set to profit from RMB business
( 2003-11-20 10:37) (China Daily HK Edition)

Hong Kong's banking and retail sectors are poised to benefit from the initial opening-up of renminbi business, analysts said yesterday.

Monetary authorities of the mainland and Hong Kong signed a memorandum yesterday allowing Hong Kong banks to conduct renminbi business - deposits, exchange, remittances and credit cards - starting around the beginning of next year.

Describing the move as "a crucial positive development for Hong Kong", Goldman Sachs said "Hong Kong's financial sector is best positioned to leverage the China growth story".

Although Hong Kong banks will have access to only four yuan business sectors at the initial stage, the policy "should open the way to very significant medium- to long-term opportunities regarding offshore renminbi business for Hong Kong banks, an important new growth area for Hong Kong's financial industry," Grace Ng, an economist of Goldman Sachs (Asia) said.

Income of Hong Kong banks would increase by 245-285 million yuan (US$29.52-US$34.34 million) consequently, Daiwa Institute of Research said.

Some Hong Kong retailers expect more sales as tourists from the mainland will be able to shop with renminbi-denominated debit and credit cards.

"The biggest benefit for us is the approval of usage of yuan debit cards. The card works exactly like our EPS (easy pay system)," said Simon Kwok, chairman and chief executive officer of cosmetic retailer Sa Sa International Holdings, as quoted by Reuters.

Kwok predicted mainland customers would spend 20 to 30 per cent more with the use of their debit cards in Hong Kong. Accounting for about 25 per cent of Sa Sa's turnover at present, mainland tourists spend about HK$600 (US$77) each at Sa Sa's stores.

Jewellery retailer Luk Fook Holdings and fashion retailer Moiselle International Holdings both expect sales to grow by 10 per cent.

"It is a really conservative estimate," said Paul Law, director and financial controller of Luk Fook, which generates half of its sales from mainland customers.

Spending of mainland tourists is expected to grow when they are able to use renminbi credit cards or withdraw cash with their renminbi cards in Hong Kong, said Clara Chong, executive director of Hong Kong Tourism Board.

 
Close  
   
  Today's Top News   Top Business News
   
+US textile decree to cloud trade relations
( 2003-11-20)
+US urged to be straight on one China
( 2003-11-20)
+Lawsuit fires up in case of vanishing virtual weapons
( 2003-11-20)
+Restructuring cash welcome
( 2003-11-20)
+UN council affirms Mideast 'road map'
( 2003-11-20)
+Automobile sales 'will rise by a quarter next year'
( 2003-11-20)
+Drugstores in Shenzhen to face closure
( 2003-11-20)
+HK banks, retailers set to profit from RMB business
( 2003-11-20)
+Ways to prevent outbreak of 'trade war' with US
( 2003-11-20)
+MII makes 3G tests a must
( 2003-11-20)
   
  Go to Another Section  
     
 
 
     
  Article Tools  
     
 
 
     
  Related Articles  
     
 

+HK banks okayed for RMB services
2003-11-20

+IMF says yuan not undervalued
2003-11-20

+Central bank, HK monetary authority sign cooperation memo
2003-11-19

+Personal RMB service OK'd in HK
2003-11-19

+Commentary: Current renminbi exchange rate right for times
2003-11-10

 
     
   
        .contact us |.about us
  Copyright By chinadaily.com.cn. All rights reserved