{"product_id":"the-offshore-renminbi-isbn-9781118339251","title":"The Offshore Renminbi","description":"\u003cb\u003eThe rise of the renminbi and what it means for forex markets\u003c\/b\u003e  \u003cp\u003eChinese authorities have ambitious plans to \"internationalize\" the renminbi, transforming it from a tightly controlled domestic legal tender into a global currency for international trade, held by both private and public sector asset managers. \u003ci\u003eThe Offshore Renminbi\u003c\/i\u003e examines this impending currency revolution, outlining why the emergence of China as a major economic power will likely soon be matched by a transformation of the renminbi's role in the global financial system. It explains how new markets for \"offshore\" renminbi are developing outside mainland China since the country is not yet ready to fully open up its economy to international capital flows, and the regulations that govern them.\u003c\/p\u003e \u003cp\u003eThe potential growth for the renminbi market is vast, thanks to China's role in the global trading community. The early stages of the internationalization effort were small-scale, but momentum has greatly increased over the past 18 months, making this book more relevant than ever. These developments offer new opportunities (and challenges) for corporate treasurers and investors, as China's profound economic success and growing prominence in global trade may transform offshore renminbi into a new global reserve currency and a legitimate competitor to the U.S. dollar.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eExplores how the \"internationalization\" of the renminbi is likely to yield a new global currency to rival the U.S. dollar\u003c\/li\u003e \u003cli\u003eExamines \"offshore\" renminbi and the host of new financial markets they have created, from a spot FX market to Dim Sum bonds in Hong Kong\u003c\/li\u003e \u003cli\u003eCovers broad themes of interest to general readers and policymakers, as well as more detailed issues of practical and direct importance to corporate treasurers and investors\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eThe Chinese government has ambitious plans to make the renminbi a global currency. \u003ci\u003eThe Offshore Renminbi\u003c\/i\u003e explains the complexities of this strategy and the dramatic implications for the global FX markets.\u003c\/p\u003e  \u003cp\u003eForeword ix\u003c\/p\u003e \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003eList of Acronyms and Key Terms xvii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1 The New Global Role for the Renminbi 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Longstanding—but Failing—Path 4\u003c\/p\u003e \u003cp\u003eAllowing Renminbi Markets to Flourish 9\u003c\/p\u003e \u003cp\u003ePolitical Tailwinds for Internationalisation 13\u003c\/p\u003e \u003cp\u003eChallenges and Consolidation Risks 19\u003c\/p\u003e \u003cp\u003eThe Renminbi in a Multipolar World 23\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2 Linking the Offshore and the Onshore Renminbi Markets 25\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInternational Transactions in a Domestic Currency 25\u003c\/p\u003e \u003cp\u003eThe Starting Point for Renminbi Internationalisation 31\u003c\/p\u003e \u003cp\u003eInvestability: Opportunities and Challenges 40\u003c\/p\u003e \u003cp\u003eTiming Convertibility 45\u003c\/p\u003e \u003cp\u003ePBoC and Exchange Rate Policy 50\u003c\/p\u003e \u003cp\u003eThe Advantages of the Offshore Renminbi 53\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3 The Birth and Evolution of the Offshore Renminbi Market in Hong Kong 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Chronological Look at Key Policy Liberalisations 59\u003c\/p\u003e \u003cp\u003eMore on Renminbi Trade Settlement in the Post–Big Bang Era 79\u003c\/p\u003e \u003cp\u003eFrom Renminbi Trade Settlement to Offshore Renminbi Deposits 93\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4 New Markets—New Jargon, New Opportunities 101\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Chinese Yuan in FX Spot 101\u003c\/p\u003e \u003cp\u003eA New Diversity of Forward Markets 109\u003c\/p\u003e \u003cp\u003eOpportunities in the CNH Markets 112\u003c\/p\u003e \u003cp\u003eTracking Returns in CNH Deposits 121\u003c\/p\u003e \u003cp\u003eThe Dim Sum Bond Market Matures 126\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5 Geographical Expansion of the Offshore Renminbi Universe 131\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFrom Hong Kong to Haiwai through Trade 133\u003c\/p\u003e \u003cp\u003eRenminbi in London and the Hub-and-Spokes Model 139\u003c\/p\u003e \u003cp\u003eDirect Renminbi Cooperation with Mainland China 142\u003c\/p\u003e \u003cp\u003eShanghai’s Aspiration and Infrastructure Overhaul 147\u003c\/p\u003e \u003cp\u003eHong Kong Is Still in Pole Position 151\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6 Drivers for Internationalisation 163\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePublic Policy: “Replacing” USD 168\u003c\/p\u003e \u003cp\u003eEconomics: China’s Role in the Global Economy 174\u003c\/p\u003e \u003cp\u003eFor Investors: Appreciation—but, More Importantly, Diversification 178\u003c\/p\u003e \u003cp\u003eFor Corporations: Fairer and More Transparent Pricing 182\u003c\/p\u003e \u003cp\u003eFor Official Reserve Managers: A New Route to Stability? 187\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 7 The Rise of the Renminbi and Its Policy Implications 193\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Renminbi’s Rise: A Threat to the Hong Kong Dollar? 193\u003c\/p\u003e \u003cp\u003eThe Renminbi’s Rise: A Regional FX Anchor 198\u003c\/p\u003e \u003cp\u003eThe Renminbi’s Rise: The SDR and the IMF 206\u003c\/p\u003e \u003cp\u003eThe Renminbi’s Rise: The US Dollar in a Multipolar World 213\u003c\/p\u003e \u003cp\u003eAfterword: The Life Overseas with the Rising Renminbi 217\u003c\/p\u003e \u003cp\u003eAppendix: The CNH Timeline 223\u003c\/p\u003e \u003cp\u003eBibliography 229\u003c\/p\u003e \u003cp\u003eAbout the Authors 231\u003c\/p\u003e \u003cp\u003eIndex 233\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eRobert Minikin\u003c\/b\u003e is the Senior Foreign Exchange Strategist with Standard Chartered Bank, Hong Kong. He is a member of the Global Foreign Exchange Strategy team focusing on Northeast Asia FX, with a particular emphasis on \"CNH,\" the new Chinese yuan (CNY) offshore market in Hong Kong. He is a well known commentator on financial market development who is regularly featured both in the print and broadcast media. Mr. Minikin has more than twenty years of experience in financial market analysis. He holds first and second degrees in economics from the University of London.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eKelvin Lau\u003c\/b\u003e is a Hong Kong–based economist covering Greater China, specialising in Hong Kong and the Pearl River Delta in Southern China. Kelvin joined Standard Chartered Bank as an economist in September 2000 and is currently a member of the Greater China research team. With a focus on Hong Kong and the Pearl River Delta (PRD) region in Sourthern China, Kelvin provides macroeconomic analysis and on-the-ground views of major economic issues. His views are quoted by various international as well as local media. He holds a degree in economics from the London School of Economics and Political Science.\u003c\/p\u003e  \u003cp\u003eThe implications of China's momentous decision to internationalise its national currency extend far beyond its many clear advantages for national and regional trade and economic stability. While the Chinese government's game plan regarding the opening of the renminbi to the global markets remains obscure, no one can doubt that its goals are ambitious—including, perhaps, replacing the U.S. dollar as the global reserve currency.\u003c\/p\u003e \u003cp\u003eAs a global currency, the offshore renminbi is still a comparatively minor player, limited mainly to the Hong Kong Dim Sum bond and FX spot markets. Yet it already has begun to have a significant impact on the global business and finance status quo, challenging time-honored market practices—such as invoicing in U.S. dollars—and creating a steadily mounting wave of new financial products and investment opportunities.\u003c\/p\u003e \u003cp\u003eWritten by two Hong Kong–based analysts with unparalleled expertise in Chinese market development and insider knowledge of the Chinese authorities' motives and mission regarding the renminbi, \u003ci\u003eThe Offshore Renminbi\u003c\/i\u003e provides detailed answers to questions about the rise of the renminbi that are of critical importance to international business, finance and public policy professionals. Supported by first-hand source material and extensive original research, Robert Minikin and Kelvin Lau reveal:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eThe motives behind China's decision to open its national currency to global free market forces and what it really hopes to gain by the move\u003c\/li\u003e \u003cli\u003eThe role the global credit crisis of 2008 played in the timing and structure of the rollout of the offshore renminbi\u003c\/li\u003e \u003cli\u003eWhy China has not fully opened its economy to international capital flows\u003c\/li\u003e \u003cli\u003eHow long it is likely to be before China fully opens the renminbi to a global free market\u003c\/li\u003e \u003cli\u003eRegulatory measures which have laid the foundation for the new offshore renminbi\u003c\/li\u003e \u003cli\u003eThe huge potential for renminbi market growth given China's increasingly central role in global trade\u003c\/li\u003e \u003cli\u003eThe new financial markets and instruments that have sprung up around the offshore renminbi and their importance for investors and traders\u003c\/li\u003e \u003cli\u003ePublic policy implications of an internationalised renminbi and the seismic shifts already underway in both the Asian and global economies\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eThe first authoritative, in-depth analysis of the rise of the renminbi and what it means for the international markets, \u003ci\u003eThe Offshore Renminbi\u003c\/i\u003e is a valuable resource for corporate treasurers, real money and hedge fund investors, FX traders and financial officers at multinational corporations, as well as government policymakers and academic researchers in a variety of related fields.\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eReveals the truth about China's big plans for its national currency and the global implications of an \"internationalised\" renminbi\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\"Robert and Kelvin have done an excellent job detailing the infrastructure of renminbi markets, in China and offshore, and describing specific policy moves to encourage internationalisation of the currency. Its accession to reserve currency status will depend on removal of Chinese exchange controls, acceptance of a floating yuan, and probably the end of interest-rate fixing within China, moves that could take much longer than the authors suggest. But as China moves down this path, this book will be a good guide to understanding its implications.\"\u003cbr\u003e \u003cb\u003e—Charles Dumas\u003c\/b\u003e, Chairman and Chief Economist of Lombard Street Research\u003c\/p\u003e \u003cp\u003e\"Minikin and Lau have written a timely, comprehensive, and useful book on what may be the most important opening of Chinese financial markets for years. China needs to embrace deeper reforms to continue to grow, and the relaxation of capital controls and a growing international role for the renminbi will be essential steps in that process. Understanding what is happening in Hong Kong and beyond with the renminbi is vital for anyone interested in Chinese growth.\"\u003cbr\u003e \u003cb\u003e—Fraser Howie\u003c\/b\u003e, Managing Director, CLSA Singapore and co-author of \u003ci\u003eRed Capitalism\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\"The authors have provided a comprehensive and illuminating description of the internationalisation of the renminbi, one of the most significant financial stories of our time.\"\u003cbr\u003e \u003cb\u003e—Robert Cookson\u003c\/b\u003e, Asia Markets Correspondent at the \u003ci\u003eFinancial Times\u003c\/i\u003e\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990303719653,"sku":"NP9781118339251","price":63.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118339251.jpg?v=1761787277","url":"https:\/\/k12savings.com\/es\/products\/the-offshore-renminbi-isbn-9781118339251","provider":"K12savings","version":"1.0","type":"link"}