Internationalisation of Renminbi (or Yuan, Chinese currency) is a clear policy and irreversible direction of the Chinese government. The mid-term policy strategy is to make inflow and outflow of Renminbi easier, and to boost the use of Renminbi in international trade and finance so as to reduce...

This paper shows that signals from the offshore Hong Kong, China spot market for the currency of the People's Republic of China (PRC), the renminbi (listed as CNH), directly affect the volatility of share prices of PRC banks and the overall risks to banking stability in the country. This is...