RMB Central Parity Opened Up, Shanghai And Hong Kong Through The Opening Of Incentives

The central parity of RMB against the US dollar was 6.1377, an increase of 225 basis points from 6.1602 on the last issue day (November 7th), the largest increase in nearly two months and a eight month high, and the largest increase since June 2010. Then, the RMB exchange rate against the US dollar rose 6.1139 in the inter-bank foreign exchange market, and a 90 basis point was appreciated. In the Asian trading session, the US dollar fell 0.2% to 6.1239 against the offshore renminbi, the largest decline in a month.

China's trade surplus posted on the weekend and the US dollar profit taking after the US non farm payroll figures released last Friday were the main factors that contributed to the rise in the central parity rate of the renminbi. At the same time, the Sino US summit is scheduled to meet on Wednesday, and this factor is expected to play a role.

The Shanghai and Hong Kong stock exchanges will start next Monday, pushing the offshore renminbi up.

The securities and Futures Commission said: "at present, the relevant business rules, operation plans and regulatory arrangements of Shanghai and Hong Kong through paction settlement and quota management have been determined.

Ready, market cultivation and investor education have achieved good results, and targeted contingency plans have been formulated.

He also said that the China Securities Regulatory Commission and the Hongkong Securities Regulatory Commission have signed a memorandum of understanding on strengthening cooperation between China Securities Regulatory Commission and the Hongkong Securities Regulatory Commission under the project of Shanghai and Hong Kong, and have established regulatory cooperation arrangements and procedures to deal with major or unexpected events in the pilot process in a timely and appropriate manner.

Chief executive Liang Zhenying said Sunday after talks with Chinese President Xi Jinping that China will soon announce the long-awaited launch date of the Shanghai Hong Kong Tong plan.

This eased the market's concern that the plan could lose its central government support.

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According to the latest data from China foreign exchange trading center, the central parity of RMB against the US dollar in November 10th was 6.1377, which was 225 basis points higher than the previous trading day.

The people's Bank of China authorized the China foreign exchange trading center to announce that the RMB exchange rate in the interbank foreign exchange market in November 10, 2014 was RMB 1 yuan to RMB 6.1377 yuan, 1 euro to RMB 7.6603 yuan, 100 yen to RMB 5.3746 yuan, 1 Hong Kong dollar to RMB 0.79170 yuan, 1 pounds to RMB 9.7593 yuan, 1 Australian dollar to RMB 1 yuan, New Zealand dollar to RMB yuan yuan, Singapore dollar to RMB RMB, Canadian dollar to RMB yuan, RMB yuan to ringgit, RMB yuan to Russia ruble.

On the previous day, the central parity rate of RMB against the US dollar was 6.1602.

Shanghai and Hong Kong will officially start in November 17th, which will help to internationalize the RMB. Under this influence, the central parity of the RMB against the US dollar rebounded sharply on the first trading day this week.