Hong Kong's RMB pilot plan covers 400 Chinese mainland enterprises

Special Report:Global Financial Crisis

HONG KONG, April 12 (Xinhua) -- About 400 enterprises in the Chinese
mainland had been selected to participate in the Renminbi cross-border trade
settlement pilot program, Under Secretary for Financial Services and the
Treasury of Hong Kong Julia Leung said here Saturday.

Speaking on a radio talk show here Saturday, Leung said enterprises in Hong
Kong would soon be able to settle trades in Renminbi through the banks with the
selected companies in the Chinese mainland.

Noting the program can reduce the risks and cost arising from fluctuations
in exchange rates, she said Hong Kong banks could expand extensively their
Renminbi services from individual clients to enterprises.

When asked whether the scheme includes trade financing, Leung said
authorities in the Chinese mainland would announce the details soon.

"The Monetary Authority has made full preparation for the program including
conducting tests on the Renminbi clearing system," Leung noted, adding that "the
system can start operation once the Chinese mainland comes up with the
operational details."

When asked whether the Hong Kong Special Administrative Region (HKSAR)
government would change Hong Kong's linked exchange rate with the U.S. dollar,
the under secretary said the system had been working effectively and the HKSAR
government had no plan to change it.