News & Events

Conference Notes from RMB: Unlocking the Potential

Source: China National Tourism Office

China is responsible for approximately 10% of Global GDP, is the world’s largest exporter and second largest importer, accounting for 12% of global trade in 2013. As Australia’s largest trading partner, China’s ongoing expansion and pace of RMB internationalisation and capital account reform will create numerous opportunities for the Australian economy.

In conjunction with Thomson Reuters, we have released a conference summary  of the first in our RMB thought leadership series held in Sydney on the 15th of June that explored the current status of Chinese capital account liberalization, aspects of RMB internationalisation and its effect to date on Australian markets

Key takeaways:

    • There is a visible imbalance between China’s dominant global share of trade and its share of global capital markets.
    • The closed nature of China’s capital account however offers it a degree of buffer against externally driven financial crisis.
    • The pace of reform has picked up of late, but the road to deregulation is long; the challenge is to keep financial fragility at bay
    • RMB internationalisation and Chinese capital account reform, while unorthodox by academic standards, might serve as agents to promote speedier domestic reform
    • Though the ink is not yet dry on CHAFTA, greater use of the RMB and growth in RMB bond issuance is already apparent; moreover, the global push toward RMB Internationalisation is expected to create opportunities for Australian businesses.

Please contact us for the full document or for further details on the Thomson Reuters-Europacifica RMB Thought Leadership series.