- Business Advantage
The Working Group on International Financial Services for BC report was finalized and circulated to key federal and provincial officials in October, 2014. Shortly after, the Governments of Canada and China announced that Canada would be designated as the first RMB Settlement Hub in the Americas.
AdvantageBC featured in the Vancouver Sun: The agreement to establish the hub has taken place in no small part as a result of the work of business associations; AdvantageBC played a vital role in this effort, collaborating with groups across the country to promote a pan-Canadian settlement centre for RMB.
Canada stole the spotlight in the offshore renminbi market last week, as it became the first North American country to win an offshore renminbi clearing licence. BC has established a working group with the government of Ontario to collaborate with the banking trade associations of BC (AdvantageBC) and Toronto (Toronto Financial Services Alliance).
An agreement to establish a Chinese currency-trading hub is expected to spur Canadian exports to China and will give Canadian investors earlier access into emerging Chinese capital markets. AdvantageBC and the Toronto Financial Services Alliance have argued that the currency hub could boost trade with China by $500 million a year, in part because it would allow Canadian companies to directly exchange funds from Canadian dollars to RMB.
AdvantageBC extended congratulations to the UK government on their announcement today that they were issuing a bond denominated in the Renminbi, China’s official currency.
In doing so, they became the second Western government to issue a RMB bond, which some refer to as “Dim Sum Bonds”. The government of British Columbia issued a RMB bond in November, 2013.