DBS RMB Index for VVinning Enterprises surges to a record high of 60.4 in 2Q 2014 | 繁體

A stabilising RMB exchange rate has prompted local corporates to re-allocate RMB funds back to deposit accounts

Business needs increased and usage regained its growth momentum

In 2Q 2014, the percentage of companies that had RMB customer orders/invoices in the last 12 months rose to 45% from the previous quarter’s 33%. Some 69% said they would use RMB for these purposes in the next 12 months, versus 52% in 1Q 2014. Both numbers are the highest recorded since 2Q 2013.

The percentage of companies using RMB products, which had plummeted to 25% in 1Q 2014, reached 34% in 2Q 2014. In 2Q 2014, some 32% of companies said they are currently using or will consider using RMB payment and receivables services in the next 12 months, versus 24% in the previous quarter.

Usage options for RMB liquid assets are increasing

The proportion of companies putting their RMB back into deposit accounts rose substantially, to 54% in 2Q 2014, versus 38% in the previous quarter. Some 38% of respondents had more than 10% of their liquid assets in RMB, the highest ever recorded.

Nathan Chow, Vice President and Economist, Group Research, DBS Bank (Hong Kong) Limited, said: “The RMB has shown signs of stabilising recently after depreciating more than 3% earlier this year. The change in exchange rate expectations seemed to have impacted companies’ RMB cash management decisions.”

“The fact that more companies chose to convert HKD into RMB in 2Q 2014 underscored two things: first, companies might be anticipating further RMB appreciation in the near term; second, companies might be foreseeing a greater need to utilise RMB in their business operations amid a stabilising RMB exchange rate,” Nathan Chow added.

DBS RMB Index for VVinning Enterprises (DRIVE) offers a strategic tool for policy-makers, businesses and investors to track the actual usage and acceptance of RMB among Hong Kong companies as well as their sentiment towards future RMB adoption. DBS releases the findings of DRIVE on a quarterly basis. Fieldwork for the 2Q 2014 report was conducted through telephone interviews with the business owners and decision makers of over 200 companies in Hong Kong.

Photo Captions

Photo 1: Nathan Chow, Vice President and Economist, Group Research, DBS Bank (Hong Kong) Limited, said a stabilising RMB exchange rate has prompted local corporations to re-allocate RMB funds back to deposit accounts.

Photo 2: Nathan Chow, Vice President and Economist, Group Research, DBS Bank (Hong Kong) Limited, said there is a broad-based increase in RMB customer orders/invoices, trade settlement, and RMB product usage.

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