Potential opportunities in the offshore renminbi space will expand in the coming years, say regulators in Hong Kong and China.
China’s central bank is studying the possibility of allowing Chinese companieswithrenminbiaccounts overseas to engage in foreign direct investments (FDI) in the mainland using the local currency. Hong Kong’s government, meanwhile, expects to have renminbi-denominated initial public offerings in the territory in the coming years.
The People’s Bank of China announced earlier this month that mainland enterprises would be able to conduct direct investments overseas using renminbi.
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