Beijing creates a trial zone for yuan convertibility

China , Currencies Jul 03, 2012 No Comments

Yuan convertibilityThe Chinese government announced a plan to set up a trial area in Qinhai Bay (Shenzhen) to experiment with the yuan‘s convertibility, the latest step in its moves to open up its capital markets.

Banks in Hong Kong, across Qinhai Bay, will be allowed to lend yuan directly to companies established in this zone. This test project, which will takes place over the next 8 years starting from 2013, is part of a broader plan to establish the yuan free convertibility and open up Chinese capital markets to try to trigger a fresh wave of economic growth.

The creation of this special currency area promotes the role of Hong Kong in the internationalization of the Chinese currency.

Tags : ,

Pascal Blanc

Pascal has implemented numerous software solutions in the areas of procurement, sourcing, spend management, supplier evaluation and performance. His clients include Fortune 500 companies in Europe, Asia and North America. He is a co-founder of Source & Procure.

Leave a Reply

Your email address will not be published. Required fields are marked *