What is certain is that banks in Hong Kong can deposit RMB freely now, but it does not mean that every bank in Hong Kong can. First of all, the Bank of China, Hong Kong Branch is definitely ok. Others, such as HSBC and Hang Seng Bank, have introduced preferential RMB time deposits, hoping to accelerate the absorption of RMB funds. Secondly, after the RMB is converted into Hong Kong dollars, the RMB obtained by the bank is not used for circulation, because in Hong Kong, the RMB is not circulated, but the currency temporarily replaced by the RMB is reserved for its storage. With the continuous appreciation of RMB, more and more Hong Kong people are more willing to deposit RMB in the mainland, such as Shenzhen, to earn several times the spread. Recently, banks in Hong Kong followed the pace of interest rate cuts in the United States and cut interest rates again. Pegging to the US dollar has led to a sharp drop in the Hong Kong dollar, and Hong Kong people can earn several times the spread by depositing RMB in the Mainland. As a result, there has been a wave of RMB exchange. At the same time, some banks in Hong Kong have also taken a fancy to this business opportunity, and have launched custody business one after another, opening RMB deposit accounts for Hong Kong customers in mainland branches of the bank without handling fees.

Also, after RMB is converted into Hong Kong dollars, we can think that it is in a bank in Hong Kong. Let's talk about the problem of people returning. First, the balance of RMB deposited in Hong Kong banks is settled with the central bank at a certain exchange rate and deposited in the central bank. Second, through currency swap, the other party's currency will be added as the transaction currency in their respective currency trading markets, and a direct exchange platform between RMB and Hong Kong dollar will be established to actively respond to the demand of China Bank Hong Kong Branch to include RMB in its foreign exchange reserves. At present, there are so few RMB deposits in Hong Kong that it is impossible for Hong Kong to hold RMB reserves. Third, Chinese mainland gradually liberalized RMB investment under the direct investment of Hong Kong capital, promoted the return of RMB from outside the mainland to the mainland market, and allowed RMB holders from outside the mainland to invest in financial services such as wealth management, currency exchange and credit financing through the financial market. . .