Standard Chartered renminbi index hit new high

An index measuring the yuan’s global use posted another new high of 748 in December, due in part to a significant rebound in CNH deposits in Hong Kong, Standard Chartered Bank announced on Feb 7.

The Standard Chartered Renminbi Globalisation Index went up 2.8 percent from November’s 728, it said.

In 2012, the index rose 50 percent despite waning global demand, fragile market sentiment, and the absence of yuan appreciation expectations.

The index is expected to rise at least another 50 percent in 2013, on prospects of recovering confidence in China’s economy, yuan appreciation and growing invoicing in yuan, the lender said in a press release.

The ratio of the relative sizes of the Hong Kong, Singapore and London offshore yuan markets stands at 81:11:8 by the end of last year.

“We remain optimistic about London’s renminbi customer deposit outlook, thanks to its continued strong usage of offshore yuan for foreign exchange and trade,” the bank said

Singapore saw in December a rebound in yuan-denominated cross-border payments and higher offshore yuan foreign exchange turnover.

The rollout of Taiwan’s renminbi business among its domestic banking units on Feb 6 could accelerate Taipei’s admission to the index, the lender said.

Launched in November, the index covers Hong Kong, London and Singapore, the top three markets in offshore yuan business.

It measures business growth in four key areas: deposits; dim sum bonds and certificates of deposit; trade settlement and other international payments; and foreign exchange.