The newly released People's Bank's report on execution of china's monetary policy for the 2nd quarter predicts a probable slight fall of the economic growth speed in the 3rd quarter. It says the growth for the whole year will be smooth and fast however. The consumption price in the 3rd quarter may see a bigger rise than the same period last year, but in the 4th quarter, the price rise may slow down. The increase speed of currency supply will retain a relatively low level if taking factors like base quota into consideration. The objective for the whole year will be achieved.

The report says the RMB service for individual offered by banks in Hong Kong advances smoothly and orderly. The RMB deposit increases steadily; the effect of cash backflow is obvious; the exchange rate between RMB and HK dollars remains stable; card transaction keeps on rising; the settlement channel remains clear. All banks in HK can observe the settlement agreement and related agreements. Abnormal flow of RMB across borders does not appear.

By the end of May, a total of 37 banks in HK have begun to offer RMB service. A total of 77.56 million yuan have flown into Chinese mainland from HK and 3.5 million yuan from Chinese mainland to HK. The RMB card issued by banks in Chinese mainland works well in HK. Total card transaction amounts to 1.08 bln HK dollars by July 24. The RMB card issued by banks in Hong Kong began to be put in use at the end of April. But the Bank of China HK branch is at present the only bank to offer this service. The total settlement reached 2.97 million yuan by the end of June.

By People's Daily Online