HONG KONG -- The pace of offshore renminbi (CNH) growth is set to continue, said HSBC in its latest research, adding that the organic growth of the CNH market in most recent end-Q1 data has been breathtaking.

Related readings:  China to open RMB FDI  PBOC to expand RMB cross-border program  Yuan settlement in cross-border trade tops $82b

The CNH deposit base has grown at a 251 percent annualized pace, to over CNH 450 billion by end-March, putting it on track to reach HSBC's forecast for CNH 800 billion to 1.2 trillion by year-end, said the bank in the report released on Tuesday.

The deposit base is the key indicator to watch when tracking overall CNH market development. It forms the basis of market supply and liquidity, as well as the source for fundraising.

Cross-border trade settlement reached 360 billion yuan, or 7 percent of total trade in 1Q this year, having grown from 5 percent in 4Q last year.

HSBC expected that more than half of China's total trade with emerging markets be settled in yuan within two to four years.

As for gross bond issuance this year, HSBC also expected its pace of growth to remain strong. (1 yuan equals $6.5)