DBS Hong Kong launches first RMB Index for VVinning Enterprises

It tracks the actual usage of RMB among Hong Kong companies.

In a release, DBS Bank (Hong Kong) Limited announced the launch of its first-in-town DBS RMB Index for VVinning Enterprises (“DRIVE”), offering 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.  

A more comprehensive and in-depth benchmark for the market 
Although macroeconomic data on the circulation of offshore RMB are widely  available, they are not able to offer an in-depth perspective on the developmental progress of Hong Kong as an offshore RMB centre. By focusing on the level of RMB usage and acceptance among Hong Kong-registered companies, this index aims to serve as the first benchmark to measure the pace of RMB internationalisation in Hong Kong.  

Future readings allow companies to seize opportunities
DRIVE is a composite index based on questions that measure four key dimensions driving business adoption and internationalisation of RMB in Hong Kong for both local and global transactions. These four dimensions are: (1) Actual business performance in the last 12 months and expectations for the next 12 months as the underlying conditions driving corporate demand for RMB; (2) Past and future demand for RMB in business operations; (3) Usage of RMB for trade settlement; and (4) Ease of access to RMB financing.

For the fourth quarter of 2012, the index value is 54.9 and all future readings of the index will be analysed in relation to this initial reading. Subsequent index values will be released on a quarterly basis and over time will reveal a lot more about the pace of development of Hong Kong as an offshore RMB centre. Corresponding policy recommendations can be drawn from analysing the future time series. In future, the index may be extended to cover other countries which are also offshore RMB centres.  

Alex Cheung, Managing Director and Head of Institutional Banking Group, DBS Bank (Hong Kong) Limited said, "As an Asian bank, DBS is committed to leveraging our  Asian insights to help corporate clients capture opportunities in the region. In particular, we are able to ride on our seamless Hong Kong-China connectivity and expertise to help our clients participate in the growth of China. The launch of DRIVE is timely and we hope it will be an insightful tool to help better understand the internationalisation of RMB in Hong Kong.”