The level of RMB deposits in the city is rising at 15% a month, notes Standard Chartered, but while daily volume for non-trade FX of RMB is growing fast, the market is still small and inefficient, say traders.
The government is more concerned with the short-term expansion of its stock market in the face of competition from Shanghai, says the Asian Corporate Governance Association.
The renminbi-denominated securities market is booming, with the volume of global trade settled in the currency soaring.
Custodians and fund-admin providers are ready to tap potential opportunities in the renminbi funds market, but worry that RMB bonds are thin on the ground.
Consolidation activity is forecast in the cement and bottled-drink sectors in China, while Chinese firms are mapping out the supply of raw materials from Africa, says the research firm.
Experts argue markets are not taking into account likely sharper demand for oil and natural gas and a potential supply crisis in coal, copper and iron ore.