Depositors in SZ from HK favors Yuan

Depositors in SZ from HK favors Yuan The upshots of China’s Central Bank boost in their interest rates fourfold since October 2010 resulted in a large number of Hong Kong denizens to exchange Hong Kong dollars into yuan and deposit the money in Shenzhen banks. Occupants from Hong Kong exchange currencies in money exchanging stations and make their way to banks near borders in Shenzhen.

A clerk in a currency exchange station said that in the past, Hong Kongese usually exchanged HK$1000 into yuan, but recent development increase the amount of HK$ being exchanged into yuan ten times.

One Hong Kong Person was asked when exchanging currencies said that he was exchanging HK$ to yuan since last year and that the yuan has more aptitude and capability in value appreciation than the Hong Kong dollar. He added that Hong Kong banks also provide yuan deposits but the interest rate is much lower than those banks in the mainland.

A statement in the People’s Bank of China explicate that On Wednesday, benchmark one-year deposit rates rose by 25 basis points to 3.25 percent and one-year lending rates rose by 25 basis points to 6.31 percent, While a statement from the Bank of East Asia  said benchmark one-year deposit rate in Hong Kong banks is only 0.55 percent.

Sources from different banks in china said that they have seen swelling numbers of Hong Kongese coming to Shenzhen for yuan deposits, requirements specified for clients from said country are just valid Hong Kong ID cards or passports.

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