"The start of yuan clearing service in Singapore is one more step forward to the internationalization of the renminbi, " said Matthew Cannon, HSBC's head of global markets in Singapore, referring to the Chinese currency by its official name.

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Orthodox thinking regarding yuan internationalization (the yuan is the base unit of the renminbi) revolves around the idea that if it is to occur, the yuan will become globalized through Hong Kong-based transactions.

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