Skip to content

Standard Chartered Renminbi Globalisation Index rose 4% in February versus January on Hong Kong CNH deposits

8 Apr 2013

Standard Chartered today announced that the Standard Chartered Renminbi Globalisation Index (Bloomberg: SCGRRGI <index>), or the RGI, reached a new high of 841 in February, up 4% from 809 in January. This translates to 64.5% year on year growth, the fastest pace since August last year.

The lead contributor to February RGI was the surge in Hong Kong CNH deposits, which was primarily driven by net outflows from mainland via trade settlement and the return of Chinese yuan (CNY) appreciation expectations.

Demand for dim sum bonds appears to increase as a wider range of investors get on board, which will drive the RGI higher in the future.

Data from Taiwan Central Bank and SWIFT payments showed a rapid increase in the use of Renminbi for cross-border trade in Taiwan, which is now the 4th largest offshore RMB centre for international payments. We expect Taiwan’s total Renminibi deposit pool to be on track to reach CNY100-150 billion by end-2013. This will push harder for its inclusion in the RGI.

Standard Chartered launched the RGI in November 2012. The Index covers the top three markets in offshore RMB business: Hong Kong, London, and Singapore. It measures business growth in four key areas: deposits (denoting store of wealth), Dim Sum bonds and Certificate of Deposits (as vehicles for capital raising), trade settlement and other international payments (unit of international commerce) and foreign exchange (unit of exchange). As the Renminbi further internationalises, there is capacity to include additional parameters and markets.

Standard Chartered Renminbi Globalisation Index

ObjectiveThe first industry benchmark that effectively tracks the progress of RMB business activity.  Offers corporates and investors a quantifiable view of the latest trends, size and levels of offshore activity that are driving RMB adoption
Index ParametersDeposits
Dim Sum Bonds and Certificate of Deposits
Trade Settlement & Other International Payments
Foreign Exchange Turnover
Markets Hong Kong
Investability  Non-tradable
Base value and date100 at 31 December 2010
Inception Date 14 November 2012
MethodologyWeight of each of the four parameters are inversely proportional to their respective variances

For further information, please contact:

Joyce Li
Corporate Affairs, Hong Kong
Standard Chartered Bank
Tel: +852 2820 3841

Karen Ng
Standard Chartered Bank (Hong Kong) Limited
Corporate Affairs, Hong Kong
Tel: +852 2820 3263

Standard Chartered

We are a leading international banking group, with a presence in 53 of the world’s most dynamic markets and serving clients in a further 64. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good.

Standard Chartered PLC is listed on the London and Hong Kong stock exchanges.

For more stories and expert opinions please visit Insights at Follow Standard Chartered on XLinkedInInstagram and Facebook.