Both China and Hong Kong are attempting to tackle businesses that have deliberately mis-invoiced goods traded across the border to sneak money offshore.
German lighting producer Osram has been given the “green light” by the PBoC to expand its China pooling structure nationwide. It is working with Deutsche Bank on the upgrade.
With the increasing liberalisation of renminbi, corporates such as IKEA are using it for trade settlement, treasury currency, as well as an investment instrument.
China’s new payment system will bolster capital flows on and offshore, providing a foundation for capital account convertibility, according to a HSBC top Asia cash and payments banker.