China focus: Deutsche Bank’s expectations for the renminbi

Recent estimations for total offshore renminbi in Hong Kong place it at over Rmb300 billion. What expectations do you have for the currency this year

We have seen a lot of interest from both financial institution and corporate clients in offshore renminbi, both from a trade finance perspective and a cash management angle. Offshore companies are generally looking to gain access to renminbi liquidity and pricing onshore companies want more transparency in their FX management.

We’ve had some nice successes with corporates which portends well as we move into 2011. We have opened numerous accounts for various kinds of transactions, including dividend payment, trade flow-related transactions, or for cash management-related pooling activities and in areas...