The Financial Times though pointed out that one oddity in the data was an impossibly large 242.6% surge in imports from Hong Kong in the month.
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A 3 billion yuan (457 million US dollars) government bond issued by the Ministry of Finance (MOF) was listed to be traded on the London Stock Exchange on Wednesday, the MOF said in a statement.
Zhang projected the yuan USDCNY, -0.0655% to decline to 7 per USA dollar by the end of the year from 6.57 now.
“The ability to do RMB transactions in the United States will be a real advantage, to small firms in particular and to large businesses that are not financial businesses”, U.S. Treasury Secretary Jack Lew said late on Tuesday.
Some analysts believe that USA support for the expanded use of the yuan will serve to keep China on track to deliver on pledges of currency and other reforms. “For an institutional investor this announcement doesn’t change much, though to the extent it makes their markets deeper and more liquid, it represents an improvement”, Mr Del Buono said.
The new quota will significantly expand the RQFII program, which stood at 501.77 billion yuan at the end of May.
Meanwhile the customs data showed China’s renminbi-denominated exports grew 1.2% year on year in May as imports purchased using the Chinese currency grew 5.1%.
In China’s spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day, Xinhua news agency reported.
US financial services firms will have increased access to China and legal, corporate and financial regulatory reforms will increase investors’ participation in China’s financial markets, Lew also said. The creation of RMB clearing banks will help encourage US firms to engage in more trade denominated in the RMB.
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“There’s a great divergence in the market’s outlook on the yuan”, said a trader at a European bank in Shanghai.
