Last week in Sao Paulo, the Hong Kong Monetary Authority (HKMA) together with Bank of America Merrill Lynch organized a summit on “Offshore Renminbi Business Opportunities.” This joint effort promoted the use of Hong Kong’s renminbi (RMB) financial platform by Brazilian corporates and financial institutions in conducting their offshore RMB businesses.
In his keynote presentation, Norman Chan, chief executive of the HKMA, discussed the significance of the Brazilian market to the HKMA and its objectives for the internationalization of the RMB. “Like China, Brazil has seen tremendous growth over the last few years. More and more, these countries are building greater ties to trade and economic development. As one of the world’s most sophisticated banking hubs, Hong Kong offers Brazilian companies the flexibility and numerous options to help conduct their offshore RMB business. This will ultimately facilitate even greater trading and investment opportunities between Brazil and China.”
Bank of America Merrill Lynch executives David Beker, chief Brazil economist and Fixed Income Strategy, Juan Pablo Cuevas, head of Global Treasury Solutions for Latin America and the Caribbean, and Ivo Distelbrink, head of Global Treasury Solutions for Asia Pacific, joined Norman Chan in the interactive panel that followed.
The group of executives led a discussion on how companies in Brazil can prepare for the increasing use of RMB in international trade and investment, the advantages of using Hong Kong’s RMB financial platform to develop offshore RMB business, and the types of RMB products and services that Hong Kong can offer.Juan Pablo Cuevas commented on the value of the summit to companies operating in Brazil. “As China is one of Brazil’s largest trading partners, the importance of the China-Brazil trade relationship cannot be overestimated. This summit was extremely timely, and we were pleased to involve our clients in a dialogue on how to prepare for the increasing growth of RMB in international trade and investment.”