Hong Kong RMB deposits reach $42b

Chinese currency deposits in Hong Kong reached RMB280 billion (US$42.15 billion) at the end of November compared with RMB217 billion (US$32.6 billion) the month before as renminbi trade settlements look set to increase, the Wall Street Journal reported. Hong Kong Monetary Authority chief executive Norman Chan said the renminbi pool in the territory is enough to meet current corporate demand. "The yuan (renminbi) market will develop progressively next year, in terms of the depth and breadth of the market and product development," Chan said, adding that he expects Hong Kong’s first-quarter quota for renminbi to reach around RMB4 billion (US$600 million). Demand for RMB cross-border trade settlement is set to increase as Beijing works to internationalize its currency.