Thứ Sáu, ngày 18 tháng 7 năm 2014

UPDATE 1-China"s Tianjin Eco-City gets go-ahead for yuan deals with Singapore




(Adds details, background)



HONG KONG, July 8 (Reuters) – China’s central bank will

allow companies and individuals in Tianjin Eco-City to conduct

cross-border yuan transactions with Singapore, following in the

footsteps of the Suzhou Industrial Park where a trial scheme was

approved last month.


The People’s Bank of China (PBOC) has released rules to

banks to kick off the Tianjin trial, which will allow equity

investment funds and individuals to make overseas investments in

yuan. It will also let companies in the area take up yuan loans

from banks in Singapore, three sources told Reuters on Tuesday.


One of the sources close to Chinese regulators said the

central bank would announce the trial scheme on Wednesday,

aiming to facilitate offshore yuan repatriation and enhance

Chinese companies’ competitive strength.


The Tianjin Eco-City, launched in 2007, is a joint project

of the Chinese and Singaporean governments that aims to develop

a template for environmentally friendly cities.


The initial quota for cross-border yuan lending between the

Tianjin Eco-City and Singapore this year is 2 billion yuan ($322

million), the source added.


“We have already started to cultivate Tianjin corporate

clients actively for cross-border lending and bond issuance

business,” said an official at a Chinese state-owned bank’s

Singapore branch.


Companies that will be permitted to conduct cross-border

yuan transactions with Singapore need to register in the

Eco-City, while banks involved include lenders in Singapore and

those set up by the Tianjin government.


An official from the Tianjin Eco-City confirmed it would

hold a news conference with the PBOC on innovative cross-border

yuan business on Wednesday.


The PBOC Tianjin branch could not be reached for comment.


The PBOC Nanjing branch announced last month it would let

eligible companies and individuals in the Suzhou Industrial Park

(SIP) conduct cross-border yuan transactions with Singapore.


Competition to become the next offshore yuan centre after

Hong Kong has intensified as China accelerates efforts to

promote its currency to regions beyond Asia.


It took almost 10 years for China to set up another yuan

clearing bank after Hong Kong, but such banks have sprung up in

the past year as Beijing has stepped up efforts to facilitate

yuan usage in trade settlement and investment.


Beijing assigned yuan clearing banks for London and

Frankfurt in June, followed by announcements it would set up

yuan payment systems in Luxembourg, Paris and South Korea.


Singapore was granted a yuan clearing bank in February 2013

and has an investment quota of 50 billion yuan to enter China’s

domestic capital market under the Renminbi Qualified Foreign

Institutional Investor (RQFII) scheme.

($1 = 6.2051 Chinese Yuan Renminbi)


(Reporting by Hongmei Zhao; Writing by Michelle Chen; Editing

by Alan Raybould)




UPDATE 1-China"s Tianjin Eco-City gets go-ahead for yuan deals with Singapore

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