Renminbi traded in Hong Kong’s offshore market closed Tuesday at a record 2% premium against the spot rate in Shanghai, Bloomberg reported. Last month, offshore renminbi traded an average 0.5% higher than onshore renminbi – and this rate has since quadrupled. Recent liberalization moves have allowed more currency transactions to be made in Hong Kong, despite capital controls that require overseas firms and investors to obtain Chinese regulatory approval to purchase or settle trades in the currency. Deposits in Hong Kong’s yuan-denominated bank accounts have doubled to US$19.5 billion this year. However, Hong Kong’s offshore renminbi market is still relatively small. Standard Chartered estimates daily volumes average US$50 million, whereas the foreign exchange swap market in Shanghai trades around US$5.3 billion each day.