China's central bank said it will actively consider establishing a Hong Kong offshore center for the Renminbi and promote the internationalization of the currency.

The People's Bank of China (PBOC) made the statement in reply to a proposal from the Chinese People's Political Consultative Conference (CPPCC) on the tactics that should be taken in opening up China's financial system.

The PBOC did not give any timetable, saying that it would "make the move step by step, together with the opening-up of the domestic capital account and the reform towards Renminbi convertibility, based on the country's overall demand."

The CPPCC proposal said China should use Hong Kong as a buffer zone in opening up its financial market and build a market-oriented financial system.

(Xinhua News Agency February 28, 2008)