| Description |
1 online resource (25 pages) : color illustrations |
| Series |
IMF working paper, 1018-5941 ; WP/13/268 |
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IMF working paper ; WP/13/268.
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| Contents |
Cover; Contents; I. Introduction; II. Development of the Offshore Renminbi Market; Figures; 1. Renminbi Cross-Border Trade Settlement; 2. ""Dim-Sum"" Bonds Outstanding; 3. Renminbi Loans in Hong Kong SAR; III. Assessing Renminbi Internationalization by Analyzing Arbitrage; A. Defining Progress in Renminbi Internationalization; 4. Renminbi Liquidity Pool in Hong SAR; B. Estimating Integration of Onshore and Offshore Renminbi Markets; 5. CNY and CNH Spot Exchange Rate Differentials; Tables; 1. TAR Model Estimation Results |
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C. Arbitrage Between Onshore and Offshore Markets and the Role of Capital ControlsD. Sources of Divergence of Onshore and Offshore Renminbi Exchange Rates; 6. Correlation of Basis and Renminbi Deposits and CDs in Hong Kong SAR; 7. Correlation of Basis and Renminbi Risk Reversal; IV. Role of Capital Account Liberalization in Renminbi Internationalization; A. Evolution of China's Capital Account Liberalization Strategy; 2. Key Mainland China Capital Account Liberalization Measures; B. The Impact of Liberalization Measures on Mainland Capital Flows |
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3. Measures to Support RMB Market Development in Hong Kong SARC. Hong Kong SAR's Role in Mainland Capital Account Opening; 8. Mainland China's Private Capital Flows; 9. Mainland China's Foreign Direct Investments by Destination; 10. Mainland China's Overseas Direct Investment by Destination; 11. Average Asset Allocation to Hong Kong SAR by Equity-Oriented QDII Funds; 12. Mainland China's External Positions vis-à-vis Hong Kong SAR Banks; D. Renminbi Internationalization and the Offshore Renminbi Liquidity Pool; 13. Mainland China's Renminbi FDI and ODI, Monthly Flows |
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14. Mainland China's Renminbi FDI and ODI Percent of Total15. Cross-Border Renminbi Trade Settlement; V. Conclusions; Technical Annex; References |
| Summary |
"Offshore use of the renminbi expanded rapidly in Hong Kong SAR as China sought to develop an international role for its currency while maintaining capital controls. This prompts two questions addressed in this paper: How far advanced is renminbi internationalization? And, what role does Chinese capital account liberalization play? The first is addressed by testing the extent of integration of offshore and onshore markets for the renminbi using a Threshold Autoregression (TAR) model and finds that there are substantial unexploited arbitrage opportunities. A VAR model is used to indentify factors contributing to this limited market integration and finds that capital controls and shifts in global market sentiment explain much of the divergence in onshore and offshore renminbi exchange rates. To address the second question, the paper shows how capital account measures have been used to promote offshore use of the renminbi more actively in the wake of the global financial crisis, but that this was done asymmetrically with controls on inflows eased to a greater extent than on outflows. It concludes that a more balanced liberalization process will sustain progress in renminbi internationalization"--Abstract |
| Notes |
Title from PDF title page (IMF Web site, viewed December 26, 2013) |
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"Asia and Pacific Department"--Page 2 of pdf |
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"December 2013"--Page 2 of pdf |
| Bibliography |
Includes bibliographical references |
| Subject |
Renminbi -- China -- Hong Kong
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Capital movements -- China -- Hong Kong
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Foreign exchange -- China -- Hong Kong
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Banks and banking, Foreign -- China -- Hong Kong
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Banks and banking, Foreign
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Capital movements
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Foreign exchange
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Renminbi
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China -- Hong Kong
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| Form |
Electronic book
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| Author |
Craig, R. Sean, author.
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International Monetary Fund. Asia and Pacific Department, issuing body.
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| ISBN |
9781475554427 |
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1475554427 |
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130693706X |
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9781306937061 |
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1484332946 |
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9781484332948 |
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