Yuan business to be extended at Hong Kong

In the agreement signed by Hong Kong and the Mainland, it will call off some of the restraints on yuan’s circulation at <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Hong Kong; the move might pave the way for yuan’s globalization as to enhance its competition worldwide. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Hong Kong Monetary Authority announced Monday based on the agreement, that the local banks, being approved, are about to provide with insurance products, as well as securities and fund products.

In addition, provisory clauses will be canceled which restraining money transfer amid the banks and among the accounts in different uses, replaced by new regulations which suitable to enterprises and individuals.

Hong Kong tends to be the first offshore centre of yuan business, and is still on the way in expansion of the scale of yuan settlement ever since 2004 in pushing yuan’s globalization.