This research paper proposes advancing the development of Hong Kong as an offshore Renminbi center. The offshore Renminbi market has seen significant growth in recent years, with offshore Renminbi deposits reaching approximately RMB1 trillion and renminbi bonds issued offshore exceeding RMB450 billion. However, the offshore Renminbi market is still in its infancy and a long way from making the Renminbi a major international currency. Offshore Renminbi reserves will have to reach RMB11 trillion for the currency to achieve one-third of the US dollar's international status within 15 years. Assuming Hong Kong would hold over 50% of all offshore Renminbi, this means that Hong Kong's Renminbi reserves will have to grow to RMB6 trillion by 2028. Currently, 80% of Renminbi spot and forward foreign exchange transactions, 99% of Renminbi deposits, and 98.5% of outstanding Renminbi bonds take place or are held within the Mainland.
