Citing unidentified sources, the South China Morning Post reported that Australia is having preliminary talks with China and Hong Kong about establishing an offshore Yuan market. The plan is to set the offshore center in Sydney, Australia’s financial and commercial capital.
China state-run Xinhua News Agency reported on Wednesday that Chinese authorities are planning to improve the offshore Yuan market in Hong Kong, unveiling an array of policies specifically designed to boost economic ties between the city and China, ahead of July 1’s Fifteenth Anniversary of Hong Kong’s return to the Mainland from Great Britain.
Australia’s Deputy Prime Minister Wayne Swan is planning to visit Hong Kong this July to discuss the matter further and is also expected to visit Beijing to have high-level talks discussing an array of issues including Sino-Australia trade agreement.
Once established, Sydney will join major financial centers London, Singapore and Hong Kong in vying for a share of the fast growing offshore Yuan market. As of February, Hong Kong remains as the biggest offshore Yuan market with customer and interbank Yuan deposits amounting to 566 billion yuan.