ICBC seeks to put up Yuan cross-border business hub in Luxembourg

David Nealis President of Ceres Ltd in Switzerland 

ICBC seeks to put up Yuan cross-border business hub in Luxembourg

The Industrial and Commercial Bank of China revealed plans to set up a Yuan cross-border business hub in

Luxembourg that will cover the whole of Europe. Financial Markets Department of ICBC (Europe) Chief Xu Zhi said that in 2012 ICBC (Europe) had a cross-border Yuan trade totaling RMB10.8 Billion (US$ 1.7 Billion), and produced an overall total of RMB 25.9 Billion (US$4.22 Billion) in cross-border deals, according to Chinese State run media.

Is the RMB going bigger than 100?

David Nealis

Is the RMB going bigger than 100?

China National Radio reported that Shandong Provincial Federations of Industry and Commerce Vice President Zong Licheng has suggested that the largest RMB note the 100 Yuan is too small of a denomination and suggested that the Chinese government introduce 500 and 1000 Yuan banknotes in the near future. VP Zong was a CPPCC delegate at the time of his suggestion.

I completely agree with VP Zong, the cost savings to the Central Government in reduced transportation costs, paper, and ink would be huge. I would also suggest that they move toward using more 1 Yuan coins eventually eliminating the paper 1 Yuan banknote.

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China?

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