Table of Contents

List of Charts ................................................................................................................ .........................................ii
List of Break-Out Boxes ....................................................................................................................................... iii Introduction .................................................................................................................. ....................................... 1
The Emergence of the RMB ...................................................................................................... ........................... 4
Why is the RMB Internationalizing? .................................................................................................................... 6
What is the Plan for RMB Internationalization? .................................................................................................. 7
1. Launch of RMB Deposit Accounts in Hong Kong ................................................................................................ 7
2. Use of the RMB as a Settlement Currency for Cross-border Trades ............................................................... 8
3. Use of the RMB as an Investment Currency and the Creation of an Offshore RMB Market ..................... 12
CNH FX Markets Overview ................................................................................................................. 14
Offshore RMB Bonds ............................................................................................................ .............. 16
Offshore Centers and Development of the Offshore RMB Market ................................................... 20
The QFII and RQFII Programs ............................................................................................................. 21
Shanghai-Hong Kong Stock Connect Pilot Program ........................................................................... 24
Offshore Onshore Convergence ......................................................................................................... 25
4. The Provision of RMB Swap Lines between the PBOC and Other Central Banks ........................................ 28
5. Use of the RMB as a Reserve Currency .............................................................................................................. 29 Infrastructure ................................................................................................................ .................................... 33
What’s Next? .................................................................................................................. ................................... 36
Conclusion and Summary ........................................................................................................ .......................... 40
Appendix A – Development of Selected Offshore RMB Centers ....................................................................... 43
Appendix B – Timeline of Major Developments ................................................................................................ 49
Appendix C – Table of Acronyms ................................................................................................ ....................... 63