But Hong Kong’s dominance may not last, chiefly because both non-Mainland and Mainland cities are actively pursuing their shares of the offshore RMB business pie.

This chapter proceeds as follows. Section 4.2 studies the growth of Hong Kong’s RMB deposits. Section 4.3 examines the evolution of the international use of the RMB since 2009 when China first began its RMB trade settlement. Section 4.4 analyzes various investment products and “backflow mechanisms” for returning offshore RMB to China’s onshore markets. Section 4.5 discusses the 2014 launch of the Shanghai-Hong Kong Stock Connect, an innovative link of the two capital markets. Finally, Section 4.6 concludes by summarizing Hong Kong’s progress in its offshore RMB business development.