Singapore, the Next RMB Offshore Financial Center

Abstract

This paper studies the strengths of Singapore as a promising RMB offshore financial center and the arbitrage issue happened in Hong Kong. I begin with introducing background of RMB internationalization and analyzing Singapore?s strengths. In addition, the RMB offshore bond market in Singapore is developing rapidly. This indicates that the offshore RMB markets in Singapore are growing fast. Finally, the arbitrage issue happened in Hong Kong may provide lessons to the Singapore monetary authority when it develops RMB financial services. These measures show that Singapore is a promising RMB offshore financial center and will play an important role in the RMB internationalization, especially regionalization.