appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Daisy Wu

The global rise of the renminbi, the Chinese currency also known as the yuan, is being driven by shifting supply chains rather than a campaign against the US dollar, according to a senior Deutsche Bank executive, following the German lender’s appointment as Europe’s first non-Chinese renminbi clearing house.
Konrad Haunit, Deutsche Bank’s head of multinational corporate coverage for the Asia-Pacific, Middle East and Africa, said the yuan’s use had grown steadily over the past five years.
“It’s been a gradual shift, as business models and supply chains have evolved,” he said. “As our clients diversify their operations across the region and beyond, they have continued to increase their use of renminbi globally.”
His comments follow the People’s Bank of China’s decision last month to name Deutsche Bank as Europe’s first foreign yuan clearing bank. The appointment gives the lender direct clearing and settlement capability for cross-border yuan transactions in Frankfurt, adding to its existing offshore yuan operations in Hong Kong, Singapore and London.
Haunit called the appointment “hugely important” for the bank, saying it would support the long-term growth of the offshore yuan ecosystem.
Asked if the yuan could broadly replace the US dollar, Haunit urged caution.
He said yuan adoption was being driven by established commercial practices in specific trade corridors, rather than a sudden global shift, citing European industrial giants in China that had invoiced in renminbi for more than a decade.
Haunit traced the deeper shift to the Covid-19 pandemic rather than geopolitics. When lockdowns, border closures and shipping disruptions interrupted the flow of goods, companies could no longer rely on supply chains built mainly to minimise costs. They began prioritising flexibility – including alternative suppliers, production sites and trade routes – so they could keep operating when one link failed.
Tariff volatility had also reinforced that logic, prompting manufacturers to redirect goods across markets as trade conditions have shifted, Haunit said.
The relevance of Chinese innovation, Chinese goods and Chinese supply chains is just going to keep increasing
Konrad Haunit, Deutsche Bank
“Ten years ago, it was all about maximising price efficiency,” he said. “Now clients value more than that. Flexibility and resilience are also key considerations.”
This shift, he noted, had expanded trade corridors beyond China’s traditional links with Europe and the US, deepening connections with emerging trade markets, including Southeast Asia and the Middle East – most of them carrying goods and components sourced from China.
Trade between China and the Association of Southeast Asian Nations reached 4.34 trillion yuan (US$646.3 billion) in the first half of 2026, up 18.2 per cent from a year earlier, according to Chinese customs data. Trade in intermediate goods – parts, components and other production inputs – climbed even faster, up 24.5 per cent.
Haunit pointed to electric vehicles, batteries, pharmaceuticals and construction work as examples of industries where clients follow China’s growing manufacturing scale.
In this evolving ecosystem, Hong Kong would function as a crucial liquidity anchor rather than merely a payment hub, Haunit said.
Multinationals would rely on the city’s deep offshore yuan pool to manage cross-border cash flows and hedge currency exposure as their regional operations spread, he added, describing Hong Kong as a “key gateway”.
Yuan deposits in Hong Kong rose 2.9 per cent in July to 1.13 trillion yuan, while cross-border renminbi trade settlement handled in the city increased 8.3 per cent to 1.38 trillion yuan, Hong Kong Monetary Authority data released in late August showed.
Despite this momentum, the yuan remains a relatively small player in global payments. According to the Society for Worldwide Interbank Financial Telecommunication messaging network, the currency ranked fifth in global payments in July with a 3.1 per cent share, compared with the US dollar’s more than 50 per cent dominance.
As supply chains stretch further into emerging markets and Chinese manufacturers continue to expand overseas, Haunit said he expected yuan usage to gain further ground.
“Our clients generally do whatever makes the most sense for their business, whether it’s efficiency, growth, resilience or innovation,” he said. “The relevance of Chinese innovation, Chinese goods and Chinese supply chains is just going to keep increasing.”


Hong Kong stocks decline after Fed raises interest rates and signals more to come

Gold rebounds after Fed rate rise as banks back long-term demand outlook

US rate increase should only have short-term impact on Hong Kong stocks: CICC

Hong Kong dollar may weaken after rate rise, but bad-debt risks remain low: HKMA

Banking & finance

Deutsche Bank sees supply chains driving yuan’s rise in global trade

Growing cross-border trade and more flexible supply chains are driving wider use of the yuan, even as the US dollar retains its dominant role in global payments. Photo: dpa

China’s 6 biggest state banks post rare shared growth as margins show tentative rebound

The six banks, including CCB, together generated more than US$297 billion in operating income for the first half. Photo: Shutterstock

China’s pension fund doubles offshore investments to new high in quest for higher returns

People rest outside a store in Beijing on August 31. Photo: AFP

Hong Kong-listed equities could have been a factor in the fund’s increase in offshore holdings in the last two years, according to an analyst. Photo: Nora Tam

Citi’s China-US corridor thrives as mainland firms hedge risks amid trade turbulence

Mainland Chinese firms rely on global institutions to navigate financial friction with the US, according to Citi. Photo: AFP

Tiger, Futu post strong overseas gains after Beijing clampdown stalls mainland growth

An ad for Tiger Brokers' AI chatbot runs on a Hong Kong tram. Photo: Handout

Wall Street helped build modern China. But is it now being cast aside?

Wall Street’s relationship with China has grown more distant in recent years. Photo: Reuters

Chinese Vice-Premier He Lifeng (right) meets with Stephen Schwarzman, chairman of Blackstone, during the China Development Forum in Beijing, March 25, 2024. Photo: Xinhua

Business

Banking & Finance

Companies

Europe’s first foreign RMB clearer says Chinese firms’ overseas expansion is strengthening the currency’s role in cross-border commerce


Europe’s first foreign RMB clearer says Chinese firms’ overseas expansion is strengthening the currency’s role in cross-border commerce.


Deutsche Bank sees supply chains driving yuan’s rise in global trade

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Europe’s first foreign RMB clearer says Chinese firms’ overseas expansion is strengthening the currency’s role in cross-border commerce

Europe’s first foreign RMB clearer says Chinese firms’ overseas expansion is strengthening the currency’s role in cross-border commerce