Euroclear Bank has announced that it is to allow clients to settle transactions and deposit Eurobonds and Hong Kong domestic securities denominated in the Chinese Yuan Renminbi in Euroclear Bank.
The first transactions in Renminbi are due to be settled on 27 September.
Euroclear Bank will support the Renminbi-denominated securities market, said Olivier Grimonpont, Regional Head and General Manager of the Euroclear Bank branch office in Hong Kong. He also added, investors will be able to settle these transactions in Euroclear Bank and eliminate foreign-exchange risk by having to settle in alternative currencies as offshore borrowers look to raise funding in Renminbi or to broaden their investor base.
Euroclear Bank intends to take an early and significant role in servicing these securities for issuers and investors alike. The Yuan Renminbi is the 53rd settlement currency offered by Euroclear Bank.
