China’s CITIC Bank predicts Singapore is poised to become the
second offshore renminbi centre after Hong Kong.
Following Hong Kong and Macau, the second phase of renminbi
internationalisation is likely to happen in the Association of
Southeast Asian Nations (ASEAN) region, according to Liao Qun,
chief economist / strategist at CITIC’s China Banking Group.
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Writing in RMB Internationalisation In Asia, Qun said
Singapore is China’s largest trade partner and largest investor as
well as investment destination in ASEAN.
Shared language and culture puts Singapore
ahead
Singapore also maintains a good political relation with China as
well as shares a similar language and culture.
Qun said these prerequisite factors make Singapore the most
likely contender for becoming the next offshore Chinese currency
centre.
CITIC predicts renminbi internationalisation will then take
place in Mongolia, North Korea, and central Asian countries, then
South Korea and Taiwan, and eventually the remaining Asian
countries in ASEAN.
