HONG KONG -- The offshore renminbi market will help strengthen the competitiveness and status of Hong Kong as an international financial center, according to the latest issue of monthly Economic Review released on Monday by Bank of China (Hong Kong).

During the first four months of this year, 16 percent of Hong Kong's renminbi deposits came from overseas enterprises.

Related readings:  RMB's bumpy road ahead  Cross-border trade RMB settlement welcomed: HSBC  HK to boost RMB-denominated shares trading  Hong Kong's RMB deposits up 13.1% in April

In the first quarter of this year, some 86 percent of renminbi trade settlement between the Chinese Mainland and overseas trading partners was conducted through Hong Kong, amongst which 19.3 percent was handled between receiving banks and corporations residing outside Hong Kong.

It showcased the closer trade and investment relationships between Hong Kong and the Chinese Mainland, Hong Kong's important status as a transshipment port, as well as its significant platform in international renminbi trade settlement amid financial globalization and electronization, said the report.

In the year 2010, the issuance of renminbi bonds, certificate of deposit and equity linked notes combined reached the equivalent of 30 percent of the newly issued Hong Kong dollar debt securities except for the government bonds and Exchange Fund Bills and Notes.

This adds to the growth impetus of Hong Kong's bond market, said the report, noting that as more renminbi investment products become available, they will help strengthen Hong Kong's capability of financial engineering and increase the attractiveness of Hong Kong as a wealth management center.

Further, the report said that as the renminbi's internationalization marches on, it will help attract foreign banks and financial institutions who are conducting offshore renminbi business to converge into Hong Kong, resulting in the offshore renminbi center with the largest offshore renminbi business volume and the most comprehensive product spectrum.