*Dari milis lain :* *Someone wrote:*
*The Sino-US trade war has been fighting for more than a year. Due to the effective response of the Chinese side, chinese foreign exchange reserves have not decreased. Although the US has repeatedly increased its chips and imposed tariffs, the US side is very disappointed to see that the expected foreign capital withdrawal in China is Did not appear.Hong Kong has once again provided a good entry point for the US to launch a financial war.Hong Kong is an international free port. Before the return of Hong Kong, the far-sighted American political elite laid a foreshadowing.In 1992, the United States passed a law, the Hong Kong Relations Act. This law, like the Taiwan Relations Act, is a gross interference in China's internal affairs. The purpose is to prepare for the future to contain China's rise.In this Hong Kong Relations Act, the United States gives Hong Kong a completely different treatment from the mainland. According to the bill, the US government will continue to treat Hong Kong as a completely different region from China in terms of politics, economy, and trade policy, and treat the Hong Kong SAR government differently from the government of the People's Republic of China in its foreign policy.Specifically, the United States supports Hong Kong to join non-governmental multilateral international organizations; the United States continues to regard Hong Kong as an independent economic and trade region, for example, on quotas and origin issues; the United States continues to provide MFN status to Hong Kong and China’s MFN status The difference is that the United States continues to recognize ships and aircraft registered in Hong Kong and negotiates directly with Hong Kong to sign an aviation agreement; the United States continues to seek to expand exchanges with Hong Kong on culture, education, technology and academic research.So what do you know about the purpose of Americans giving special treatment to Hong Kong?The reform and opening up of the mainland must continue to attract foreign investment. Since the renminbi or yuan is still not freely convertible, it is inevitable that foreign capital will enter into the mainland to consider a security issue. How can funds be safely withdrawn after the funds enter the mainland?After the reunification of Hong Kong, the mainland has given Hong Kong many preferential policies. It is more convenient for Hong Kong capital to enter and leave the mainland than other foreign capital. In particular, the United States has enacted this Hong Kong Relations Act for Hong Kong.* *There are many special treatments for Hong Kong. Therefore, for foreign investment, entering Hong Kong through this channel is the safest route.* *Through the "Hong Kong Relations Act" to guarantee the special status of Hong Kong, the funds of the global investment in the mainland are concentrated in this channel. In the future, to curb China, as long as the face is abolished and the special treatment for Hong Kong is abolished, it is equivalent to abolishing this "safe" entry and exit channel of foreign capital. Then, it may trigger panic of foreign investment and create a wave of withdrawal of foreign investment in China!Once there is a wave of foreign capital withdrawal, it will have a serious impact on china foreign exchange reserves.This is one of them.Second, Hong Kong is also the most important offshore offshore settlement center in the mainland.Now, in order to get rid of the dependence on foreign exchange reserves in international trade (mainly relying on the US dollar), we will not spare no effort to promote RMB settlement in international trade.As of 2018, the internationalization of the RMB has made great progress. At present, it is only import and export trade. It is settled in RMB by more than 7 trillion yuan per year. More than 60 central banks have included RMB in foreign exchange reserves.Before the free exchange of RMB is realized outside China, the RMB internationalization must have a RMB offshore settlement center.The reason is very simple. China will spend several trillion yuan to go out through import and export business and foreign investment every year. What should people do with RMB?The offshore settlement (transaction) center of the renminbi must be set up abroad. The renminbi can be freely converted into other currencies through this center. At the same time, the renminbi can also be exchanged for renminbi through other currencies in this center.In this way, the renminbi can provide good liquidity to different people outside the country.Why is the RMB offshore settlement (transaction) center outside the country?Because the main international currency must have a large number of third-party transactions, this third-party transaction is not directly related to China and the intermediary platform. In the case of the US dollar, third-party transactions in the US dollar account for more than half of the total US dollar trading volume.Therefore, if the RMB is to be internationalized, it must have this third-party trading platform. And third-party transactions tend to be offshore (outside), not offshore (inland) –Because trading in the onshore market (domestic) may involve many legal provisions, financial regulatory restrictions, and the offshore market (outside) is very free.In addition, a large number of non-residents are required to hold the country's monetary assets outside the issuing country. For example, 70% of non-US residents hold US dollar assets in offshore markets outside the US because they are worried that if the assets are in the US The risk of freezing.Understand the above principles, now the question is coming, where is the China RMB Offshore Settlement Center (the main offshore settlement business of the RMB)?There are two international financial centers in the world, one in New York and one in London. There are three regional financial centers in Asia: Tokyo, Hong Kong, and Singapore.There seem to be several choices, but there is no choice at all!*
