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The Roadmap to Sydney’s RMB Hub Development

Release Date: 4/11/2015
The Sydney Business Chamber and NSW Government today welcomed a new report which outlines how Sydney can drive additional investment and jobs by taking advantage of its status as an official offshore renminbi (RMB) centre.
The report: Renminbi Internationalisation and the Evolution of Offshore RMB Centres: Opportunities for Sydney, reveals new possibilities for Australia as China continues to open to the rest of the world.
The report was funded by a number of parties, including the Sydney Business Chamber, NSW Department of Industry and the Australian National University, with in-kind support provided by King & Wood Mallesons and the Financial Services Knowledge Hub.
Executive Director of the Sydney Business Chamber, Patricia Forsythe said, “Sydney has already been granted RMB hub status and this report is essentially a manual instructing Australia how it can build on the financial relationship between Australia and China.
“The report reveals complementarity activities between the Australian and Chinese economies that will underpin closer financial relations and ensure Sydney is an attractive place to conduct RMB-denominated business.
“For example, China has a very large savings pool, while Australia has an efficient and sophisticated funds management sector.
“Australia as a net importer of capital will gain increasing access to Chinese savings which will support investment, growth and jobs in Australia.
“As China opens up there will also be increasing opportunities for Australian financial services providers to export their considerable expertise to Chinese households and firms.
“While the opportunities are immense, a number of challenges remain including the need for Australia to understand Chinese regulation and policy changes, and better brand recognition for Australian providers in the Chinese market.
“Sydney now competes with 17 other official RMB centres and for Sydney to take advantage of its official RMB centre status, it is essential for Sydney to build on the momentum generated by being designated as an official RMB hub.
“Sydney is the engine room of Australia’s economic activity and the hub for the nation's financial services sector with over 65% of Australia’s banking and finance activities undertaken in Sydney.
“The Sydney Business Chamber is the leading advocate for policies and initiatives that enhance Sydney’s international status and this report recommends important actions that should be implemented,” said Mrs Forsythe.
NSW Minister for Industry, Resources and Energy, Anthony Roberts, welcomed the research – and the Sydney Business Chamber’s support for it - as a valuable contribution to positioning Sydney to maximise the benefits of being an offshore RMB hub.
“With China a priority market for NSW and one in five Australian jobs linked to international trade, the NSW Government is committed to further developing and expanding Sydney’s RMB activity,” Mr Roberts said.
“This report is a valuable asset to help government and industry to understand the opportunities and challenges when it comes to developing an RMB hub, including how Sydney could differentiate a hub to compete with other RMB hubs across the world.
“The NSW Government is now considering the report’s recommendations, while noting that these issues are largely matters for the Australian Government.”
Media contacts for the Sydney Business Chamber: Patricia Forsythe 0418 165 466 or Kate Bryant 0424 186 367
Media contact for Minister Roberts: Tim Potter 0417 822 957
To download a copy of the report, click here.

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