HONG KONG’S status as the world’s largest offshore yuan hub is intact as its trade settlement and lending in the Chinese currency climb, according to Hong Kong Monetary Authority (HKMA) Chief Executive Norman Chan.

    Banks in Hong Kong handled 5 trillion yuan (US$815 billion) in trades settled in the Chinese currency in the last 10 months, up 73 percent from a year earlier, Chan said Friday. The city’s outstanding yuan loans totaled almost 170 billion yuan at the end of October, he said.

    China is promoting usage of the yuan in global trade and finance by appointing clearing banks for the currency in cities including London, Seoul, Toronto and Sydney as well as starting direct trading between the yuan and major currencies including the Australian dollar and euro.

    The yuan ranked seventh for usage in global payments last month, according to the Society for Worldwide International Financial Telecommunications.

    “It’s a year of harvest for Hong Kong in the yuan business,” said Chan. “As China’s policies become more open, meaning less restrictions on capital flows, Hong Kong will benefit the most as the largest and most vibrant yuan center.” (SD-Agencies)