Hong Kong Immigration Business: A survey released by Hong Kong on the 11th shows that in the second quarter of this year, the demand and usage of Renminbi by Hong Kong enterprises have both increased.
To reach the above conclusion, from May to June this year, DBS Bank (Hong Kong) Limited conducted telephone interviews with decision-makers from 211 registered companies in Hong Kong. These 211 companies included 200 small and medium-sized enterprises (with annual revenues between 1 million and 1 billion Hong Kong dollars) and 11 large enterprises (with annual revenues exceeding 1 billion Hong Kong dollars).
Driven by the increased demand and usage of Renminbi by Hong Kong enterprises, the "DBS Renminbi Momentum Index" rose from 55.1 in the previous quarter to 60.5 in the second quarter of 2015. The "DBS Renminbi Momentum Index" measures the level of Renminbi usage among registered companies in Hong Kong, as well as the acceptance and penetration of Renminbi usage, and has been published for over two years. The latest level of 60.5 marks the highest historical value of this index.
In the survey, 30% of the responding enterprises indicated that they had Renminbi customer orders/invoices in the past 12 months, and 35% of the responding enterprises indicated that they would use Renminbi customer orders/invoices in the next 12 months, both of which are higher than the previous quarter. In the previous quarter, the respondents who made the same choices were 23% and 32%, respectively. DBS Bank thus concludes that the business demand for Renminbi among enterprises is recovering.
In the survey, the proportion of enterprises using Renminbi products also increased from 27% in the first quarter to 30% in the second quarter of this year. 25% of the responding enterprises indicated that they are currently using or will consider using Renminbi deposits in the next 12 months. 5% of the responding enterprises indicated that they are currently using or will consider using Renminbi trade services in the next 12 months.
DBS Bank expects that the use of Renminbi products will become increasingly popular in the future. As the mainland continues to relax financial regulations, enterprises will adopt various hedging strategies to mitigate the impact of increased exchange rate fluctuations.
Regarding the recent fluctuations in the stock market, DBS Bank economist Zhou Hongli stated that this will not shake the internationalization of Renminbi. The proportion of trade settled in Renminbi continues to rise, and direct investment inflows and outflows settled in Renminbi are also increasing. Currently, 50 to 60 central banks, sovereign institutions, and multinational organizations are investing in Renminbi.