China’s Different Path Toward Internationalization of the RMB: Hong Kong as an Offshore RMB Financial Center

April 8, 2011


Authored by Howard Chao, who leads O'Melveny's Asia practice, and Andrew Hutton, who leads the firm's Asia Debt Capital Markets practice, O'Melveny published its upcoming White Paper on China's steps toward the internationalization of its Renminbi currency (RMB).  The White Paper discusses one of the most important recent trends in international commerce and finance.

As a result of recent initiatives by China and Hong Kong, the RMB is used more than ever before in cross-border trade and investment and RMB now is an attractive alternative to US dollar denominated transactions for many foreign companies and investors. Offshore RMB deposits in Hong Kong alone exceed 10% of total bank deposits and are increasing rapidly, as are the uses for RMB and the available RMB denominated investments and products. These developments are important to any company or institution with operations in China, that conducts trade with Chinese companies or seeks global investment opportunities.

We welcome questions from clients, contacts and friends regarding the offshore RMB market. Should you have questions or desire further information, please contact Howard or Andrew directly, or your regular OMM attorney will gladly put you in touch with them or another member of our Firm's Asia Finance Team.  To request a hard copy of the PDF, please click here.

Click here for a soft copy of the White Paper.


This memorandum is a summary for general information and discussion only and may be considered an advertisement for certain purposes. It is not a full analysis of the matters presented, may not be relied upon as legal advice, and does not purport to represent the views of our clients or the Firm. O'Melveny professionals contributed to the content of this newsletter. The views expressed in this newsletter are the views of the authors except as otherwise noted.

O'Melveny & Myers LLP is a foreign law firm registered with the Ministry of Justice of the People's Republic of China. Under current Chinese regulations, we are allowed to provide information concerning the effects of the Chinese legal environment, but we are not authorized to practice Chinese law or to render legal opinions in respect of Chinese law. We work in cooperation with a number of Chinese law firms. Should you require a legal opinion in respect of any Chinese law matter, we would be happy to assist you in obtaining one from a Chinese firm.