Standard Chartered has announced that the Standard Chartered Renminbi Globalisation Index, or the RGI, ended 2013 on a high note at 1,377 in December, up 5.9% from the previous month and 84.1% year-on-year, driven by rising deposits and cross-border payments.

Expansion of new offshore centres, further policy push and the appreciation of the yuan currency will remain as key drivers for the RGI as we enter 2014. We expect the RGI to increase another 60% to reach 2,200 by year end.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The rise of RGI re-accelerated in the fourth quarter, triggered by a return of Renminbi appreciation and the liberalisation in cross-border Renminbi lending regulations. Our forecast for another year of more than 2% appreciation for the Renminbi to USD/CNY of 5.92 by end-2014 should bode well for more deposit accumulation this year.

By end-2014, we expect Renminbi deposit in Hong Kong to hit CNY1.15-1.2 trillion, translating into a 34-40% increase, while Taiwan’s could reach at least CNY250 billion.

Continuing prospect of the yuan appreciation and still ample offshore liquidity has lent support to the Dim Sum bond market amid weak market sentiment. January primary issuance hit a monthly record high level of CNY63 billion and we expect strong primary issuance of CNY550-580 billion for 2014.

London widened its lead over Singapore in 2013, in terms of both average daily CNH FX turnover and Renminbi cross-border payments; this offset its lack of Renminbi deposit growth. London London and Singapore now account for 13.4% and 9.7%, respectively, of activity tracked by the RGI, versus 10.6% and 10.7% a year ago. Hong Kong remained the biggest offshore Renminbi centre.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.