The announcement comes after the ASX signed an agreement with the Bank of China in February.
Speaking at the RMB Internationalisation Round Table in Sydney yesterday, ASX chief executive Elmer Funke Kupper said the service has received regulatory clearance from the RBA and ASIC.
“It has been successfully tested by the four major banks over the last few weeks,” said Mr Kupper.
Australia cannot afford to watch as the RMB becomes a more important currency around the world, he said.
“Several Asian markets are growing their presence, and London and Frankfurt have recently announced their designated clearing banks,” said Mr Kupper.
“In total, there’s a pool of over 1.5 trillion yuan in offshore RMB, and that pool is growing. In addition, some 480 million yuan is available through quotas to qualified institutional investors.”
The ASX could, in the long term, issue and trade RMB-denominated bonds, equities and derivative, Mr Kupper said.
“We look forward … to ensuring that Sydney has the capabilities it needs to be a vibrant offshore RMB financial centre,” he said.
Also speaking at the event, RBA deputy governor Philip Lowe said the internationalisation of the RMB and the accompanying process of capital account liberalisation in China “could well turn out to be one of the seismic events in global capital markets over the coming years”.
“Ultimately, this process could see Chinese citizens be able to hold internationally diversified portfolios, just as the citizens of many other countries are already able to do,” said Mr Lowe.
“It could also see citizens from other countries able to buy and sell Chinese financial and other assets with far fewer restrictions than are currently in place. And it could see the Chinese currency become one of the world’s most actively traded.”
Mr Lowe revealed that the RBA has “around three per cent” of its foreign currency reserves invested in RMB.
“This portfolio shift reflects the growing importance of China in the global economy and the broadening financial relationship between Australia and China,” he said.
“But it has also allowed us to deepen our own understanding of developments in Chinese financial markets and the RMB.”
