Hong Kong sees rapid growth in RMB deposits, swaps
The level of RMB deposits in the city is rising at 15% a month, notes Standard Chartered, but while daily volume for non-trade FX of RMB is growing fast, the market is still small and inefficient, say traders.
Renminbi deposits are growing at an extraordinary rate in Hong Kong, but the city's market for deliverable cross-currency swaps using the Chinese currency remains small and inefficient, say traders.
Standard Chartered Bank expected the level of RMB deposits in Hong Kong to stand at Rmb120 billion ($17.9 billion) by the end of September and Rmb200 billion by the end of 2010, from Rmb80 billion in June.
"It is rising at about 15% each month, an extraordinary growth," says Tee Choon-Hong, Standard Chartered’s regional head of capital markets for North Asia.
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