PBoC: Shanghai should become center for offshore RMB products

Shanghai should become China’s hub for pricing renminbi-denominated offshore financial products and services, argued Zhang Jianhua, director of the research department at the People’s Bank of China (PBoC), Bloomberg reported. "We should develop Shanghai’s foreign-exchange market to match expansion of yuan use overseas," Zhang said at a conference in Shanghai. "We should try to control price setting. Strong growth in an offshore yuan market might influence the currency’s onshore price." Zhang was likely referring to a recent expansion in cross-border exchange settlement programs. Most renminbi-denominated offshore financial products are currently set in Hong Kong.