Downloads
Supported by
 |
 |
 |
China is making great strides in increasing the international use of the renminbi (RMB) for trade and investment, with Hong Kong as the gateway to China for RMB‑denominated trade and capital flows. The Australia-Hong Kong RMB Trade and Investment Dialogue will provide a forum to discuss how to best capture the new business opportunities arising from the wider use of the RMB in trade and investment in our region, and to facilitate the participation of Australian businesses in this growing market.
Reference Papers
RMB INVOICING IN A LONGER RUN CONTEXT: OPPORTUNITIES AND CHALLENGES FOR AUSTRALIA
This paper, from the Australian Financial Centre Taskforce, sets the issue of RMB trade invoicing in the broader context of the move over time towards internationalisation of the RMB. It then examines some of the opportunities and challenges for the Australian financial sector, both in this current early phase of RMB internationalisation and in a more medium term context, and outlines some of the market and policy issues that are likely to shape the extent to which Australia makes the most of the opportunities.
CORPORATE ATTITUDES TOWARDS RENMINBI TRADE SETTLEMENT AND INVESTMENT
This paper is based on the results of a survey conducted by banks participating in the Australia-Hong Kong Renminbi Trade and Investment Dialogue. It provides an overview of a sample of non‑financial firms’ attitudes towards RMB trade settlement and investment in the offshore RMB market, with the results intended to frame discussions on the day.
The survey results suggest that the outlook for growth in Australia’s RMB trade settlement is positive, with most of the firms participating in this survey expecting their use of RMB trade settlement to increase in the future. The surveyed firms cited a variety of benefits that could arise from settling trade in RMB. In particular, RMB trade settlement was seen as being beneficial for firms’ broader business relationships with their Chinese counterparts and, more specifically, as increasing their ability to negotiate better pricing terms. The ability to hedge associated foreign currency flows was identified as being the single most important factor influencing the surveyed firms’ choice of trade settlement currency. In this respect, ensuring that there is adequate access to the appropriate RMB banking products, including hedging instruments, is likely to be important for increasing RMB trade settlement in the future. Although the survey results indicate that the take-up of offshore RMB financial products by the surveyed firms has been relatively limited to date, raising private sector awareness of the products available and increasing the use of RMB trade settlement could aid future growth in the offshore RMB market.
This document has been supplied by the Reserve Bank of Australia.
Agenda
Morning Session: Australia-Hong Kong RMB Trade and Investment Dialogue
Half-day session, including lunch, convened by Reserve Bank of Australia Deputy Governor Philip Lowe.
This open session is designed to educate Australian businesses about RMB-denominated trade and investment, covering the following questions: What is RMB trade settlement? Why might it be good for Australian corporates? How do corporates undertake RMB trade settlement? How could it be done better? What products are available in the offshore RMB market? Of what benefit are these products to corporates? How could these products and the processes around accessing them be improved? What investment opportunities are there in Mainland China?
150-180 invitees, including Australian and Hong Kong banks, officials, businesses and media.
8.00-8.45 Registration
9.00-9.20 Introductory address by Deputy Prime Minister and Treasurer The Hon Wayne Swan MP.
Opportunities for Australia in the RMB market and the benefits of building closer collaboration between Hong Kong and Australia in the development of offshore RMB business opportunities.
9.20-9.35 An overview of China’s policies with respect to RMB‑trade settlement and international use of the currency - Mr Sun Guofeng, Deputy Director-General, Monetary Policy Department, People’s Bank of China.
Perspectives on opportunities for RMB trade settlement with China. The direction of change, including recent developments in the offshore RMB market.
9.35-9.50 An Overview of RMB Trade Settlement – Mr Michael Smith, Chief Executive Officer, ANZ.
A broad description of the RMB trade settlement process, focusing on what Australian businesses need to know and understand.
Panel Session 1: Raising Awareness Regarding RMB Trade Settlement
9.50-10.50 Market and industry panel – chaired by Reserve Bank of Australia Deputy Governor Dr Philip Lowe.
A panel of four industry representatives, including:
- Fortescue Metals Group - Mr Andrew Forrest, Chairman
- Bank of China (Australia) – Mr Chi-wah Chung, Acting Chief Executive Officer
- Industrial and Commercial Bank of China - Mr Ruixiang Han, General Manager Sydney branch
- Westpac – Mr Gordon Sparrow, Executive Director, Head of Trade Sales, Global Transactional Services, Westpac Institutional Bank
The panel to have a high level discussion on RMB trade settlement. Panellists will each speak for 3-5 minutes on an assigned pre-agreed question, after which point the panel will take questions from the floor.
Possible topics for discussion include:
- Benefits of transacting in RMB;
- Discussion of specific issues around commodity trade; and
- A run through of key issues and concerns regarding RMB trade settlement.
10.50-11.10 Tea break
Panel Session 2: Raising Awareness Regarding RMB Investment and the Offshore Market
11.10-12.30 Market and industry panel – chaired by Hong Kong Monetary Authority (HKMA) Deputy Chief Executive Mr Eddie Yue
A panel of six industry representatives, including:
- BIS Chief Representative for Asia and the Pacific, Dr Eli Remolona
- Bank of China (Hong Kong) - Mr Gao Yingxin, Executive Director and Deputy Chief Executive
- Commonwealth Bank – Mr James Wall, Head of Financial Institutions Group, Institutional Banking & Markets
- HSBC (Hong Kong) - Ms Anita Fung, Chief Executive Officer
- J.P. Morgan – Mr Patrick Wu, Executive Director, Head of CNY Trading, Global Emerging Markets, Shanghai
- NAB – Mr Drew Bradford, Executive General Manager, Fixed Income, Currencies and Commodities
This panel to provide an overview of RMB investment and different aspects of the offshore market in a discussion format. Panellists will each speak for 3-5 minutes on an assigned pre-agreed question, after which point the panel will take questions from the floor.
Possible topics for discussion:
- An outline of why the discussion from Session 1 on RMB trade settlement is related to and important for RMB investment and the development of the offshore RMB market;
- The current capabilities and future direction of the offshore market, including explanation of products and issues for the future; and
- How easy is it to issue bonds, raise funds and conduct transactions in RMB in the offshore market? Is the size of the market a concern? What potential is there for the future? Will RMB be an alternative funding currency in the future?
12.30 – 2.30 Lunch
Keynote speech: Australian Treasury Secretary Martin Parkinson
Afternoon session: Closed-door Australia-Hong Kong Banking Forum
Representatives from the Australian and Hong Kong banking communities, with government officials as observers.
2.30-4.30 Chair: Mr David Olsson (Chairman of AustCham Beijing and Partner at King & Wood Mallesons)
Topic 1: RMB trade settlement
Key issues for RMB trade settlement, as outlined in the reported results from a survey conducted by banks of their corporate clients' attitudes towards RMB trade settlement and any practical issues faced. Discussion to also cover issues from the banks' perspectives.
Topic 2: Offshore RMB market
What opportunities are there to increase RMB flows between Australia and Hong Kong? Are there specific issues that need to be considered, including the adequacy of liquidity in the offshore RMB market, areas of growth in the offshore RMB market, adequacy of the supporting infrastructure, the potential for new RMB products (for example, hedging products)?