(14 March 2013 – Hong Kong) Increased trade with mainland China has fuelled demand for renminbi (RMB) services in Hong Kong.In response to this demand, DBS Bank has decided to boost lending in Hong Kong by 10 percent.
DBS Chief Executive for Hong Kong, Sebastian Paredes, said renminbi trade settlements by DBS Group Holdings Ltd jumped 60 percent from 2011. He predicts the bank’s business using the renminbi will exceed the 17 percent share of total revenue it attained in 2012.
“What we clearly want is to continue the RMB products, the RMB services and the RMB capabilities to be in the forefront of the banking sector,” said Paredes.
Hong Kong banks handled some 90 percent of China’s renminbi-denominated trade payments last year. Sales of Dim Sum bonds rose to US$28 billion (A$27 billion) in 2012, a 15 percent jump year-on-year.
DBS expects a continuation of rapid growth in the utilization of the RMB not only in trade, but in FX, in money markets and in debt. The bank will also participate in the Renminbi Qualified Foreign Institutional Investor program