RMB Dialogue

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RMB Dialgue

Supported by

The Treasury Hong Kong Monetary Authority logo Reserve Bank of Australia logo

It has been an eventful period for RMB developments since the first Dialogue in Sydney around a year ago. Cross-border trade in RMB has continued to increase globally, while RMB financial activity in offshore markets has also grown. Meanwhile, the Chinese authorities announced plans for further capital account reforms that are likely, over time, to support the trend towards greater RMB usage internationally. The Second Australia-Hong Kong RMB Trade and Investment Dialogue will discuss what these developments mean for the offshore markets in Hong Kong and Australia, and what role our banking communities and policymakers can play in helping these markets expand further.

Reference Papers

RMB TRADE INVOICING: BENEFITS, IMPEDIMENTS AND TIPPING POINTS

This paper analyses a survey of RMB invoicing awareness, use and expectations conducted on Australian and Chinese corporates. It considers the benefits of invoicing trade in RMB as well as a range of factors that would appear to be discouraging RMB use between Australia and China. It also identifies potential tipping points for increased RMB invoicing going forward.

RMB Trade Invoicing: Benefits, Impediments and Tipping Points* PDF icon PDF 350KB

* Please note this document was provided by the Australian National University

INTERNATIONALISATION OF THE RENMINBI: PATHWAYS, IMPLICATIONS AND OPPORTUNITIES

At last year’s Dialogue, it was announced that Centre for International Finance and Regulation would undertake research on the internationalisation of the Renminbi (RMB) and the implications and associated opportunities that may arise for Australian financial markets. The final report was released on 26 March 2014 in Sydney.

Internationalisation of the Renminbi: Pathways, Implications and Opportunities** PDF icon PDF 9.88MB

** Please note this document resides on the CIFR website

Agenda

Morning Session

08:45‑08:55 Welcome remarks by Norman CHAN, Chief Executive, Hong Kong Monetary Authority
08:55‑09:15 Remarks by Martin PARKINSON, Treasury Secretary, Australia
09:15‑09:25 Presentation by WANG Dan, Deputy Director General, Monetary Policy Department II, People’s Bank of China
09:25‑09:35 Presentation by Kathleen WALSH, Associate Professor, Australian National University
“RMB Invoicing: Benefits, Barriers and Tipping Points”
09:35‑10:50 Panel Session 1: RMB internationalisation: Macro trends and business opportunities

As China’s economy grows further and RMB internationalisation progresses, what are the key trends being observed? How can companies leverage on these trends to strengthen trade and investment activities with China? What might be some of the challenges faced by companies in using RMB?

Moderator: Philip LOWE, Deputy Governor, Reserve Bank of Australia

Panellists:

  • Park CHU, Financial Controller of Gold East Trading (HK) Co Ltd
  • Richard MAZZOCHI, Partner, King & Wood Mallesons
  • Li-Gang LIU, Chief Economist, Greater China, Australia and New Zealand Banking Group
  • Samuel TONG, Deputy Chief Executive, ICBC (Asia)
  • Lawrence LAM, Senior Adviser, Greater China, National Australia Bank
  • Michael VRONTAMITIS, Head of Product Management NEA, Transaction Banking, Standard Chartered
  • Raymond WANG, Head of RMB Capability Development & Head of Shanghai Free Trade Zone Sub-branch Preparation, Westpac
10:50‑11:05 Coffee break
11:05‑12:20

Panel Session 2: Latest developments and opportunities in offshore RMB market

What do the latest policy measures by Mainland authorities mean for offshore RMB activities? How have businesses made use of these new options made available recently? How easy is it to conduct various activities in RMB – financing, investments, and liquidity management?

Moderator: Eddie YUE, Deputy Chief Executive, Hong Kong Monetary Authority

Panellists:

  • ZHU Yanlai, Deputy Chief Executive, Bank of China (Hong Kong)
  • James CONNELL, Global Head of Spot Foreign Exchange Trading, Commonwealth Bank of Australia
  • Anita FUNG, Group General Manager and Chief Executive Officer Hong Kong, HSBC
  • Sudhanshu SANADHYA, Head of GEM Greater China Trading, J.P. Morgan
  • Bryan CHAN, Co-Head, Equities, Fixed Income & Currency, Global Markets, Hong Kong Exchanges and Clearing Limited
  • Stefan HARFICH, Head of Bank Relations APAC, Siemens Financial Services

Luncheon

Afternoon Session: Meeting of Hong Kong and Australian banks

Chair / Moderator: David OLSSON, China Practice Consultant, King & Wood Mallesons and Board Member, Australia-China Council

14:00‑14:30 Progress update by RMB Working Group
14:30‑15:15 Topic 1: RMB trade settlement and banking services

Si
nce the first meeting of the Dialogue, market observations suggest that while there has been an increase in the use of RMB to settle trade between Australia and China, there is still a great deal of potential for corporate uptake to further increase. Participants are invited to discuss ways to increase the use of RMB for trade settlement.

  • What types of companies have been more receptive to transacting in RMB? How could member banks better tailor their products and services to serve the needs of this group of companies?
  • As trade settlement increases, it is expected that the demand for trade-related activities (such as trade finance and hedging) and RMB cash management solutions will grow in tandem. Which areas, taking into consideration the latest policy developments, show the most potential for growth? What can banks do, collectively and individually, to get prepared for these opportunities?
15:15‑15:30 Coffee Break
15:30‑16:15 Topic 2: RMB financing and investment

With China taking steps to further open up its capital account, participants are invited to discuss the two-way investment opportunities this might present for corporates and financial institutions in Hong Kong and Australia.

  • Are there any impediments to greater investment activities in RMB, and what could be done to overcome these challenges? How could banks and other financial institutions in Australia and Hong Kong play a better role in facilitating investments between Australia and Mainland China?
  • Furthermore, there are signs that interest in raising financing in the offshore RMB market is increasing. How could member banks work to facilitate these activities?
16:15‑16:30 Conclusion

Media Releases

Officials' media release

Bankers' media release