USING RENMINBI HELPS REDUCE COSTS, SAYS HSBC ECONOMIST

KUALA LUMPUR, July 19 (Bernama) -- By 2015, the renminbi is anticipated to be used in half of the trade settlements between China and Asean countries, and its use as a trade settlement currency within Asean can help reduce costs.

HSBC Asian Economist Wellian Wiranto told reporters this after delivering a talk entitled "Growth Opportunities in Asean-China Economic Trade and Investment Outlook" here Tuesday.

"At least, the hedging cost will be passed fairly to both trade partners. Also, it can potentially reduce the transaction price," he said.

Nevertheless, he said, China would have to do a lot to promote its currency now that more than half of the country's total trade were with emerging markets.

China also was Malaysia's largest trading partner and second largest export destination, he added.

Meanwhile, he expected Asean'S GDP to register five per cent growth this year while China 8.9 per cent.