China Watch Blog picked up this headline in SCMP’s Business Post yesterday that “Shanghai drops offshore yuan trading hub dreams”, and will instead merely complement Hong Kong in global currency drive.
How noble of Shanghai to do so! Vice-Mayor Tu Guangshao told a finance forum that the Mainland’s richest city, Shanghai, would hone its image as an onshore rather than an offshore centre, playing a complementary role to HK as the two cities jointly reinforce the yuan’s internationalisation drive.
This move leaves Hong Kong a clear lane to remain the dominant market for offshore trading of the Reminbi – the Chinese currency.
Probably one of the reasons Hong Kong, rather than Shanghai, is spearheading this drive is because the former British Colony has all the connections and what it takes to achieve the “yuan globalisation role” better than Shanghai.
If you think China Watch Blog's information is useful, buy me a coffee!!!
