The People's Bank of China governor Zhou Xiaochuan says it is unlikely that Hong Kong banks will be allowed to conduct yuan business in the near term. 
 
He told a Hong Kong Monetary Authority dinner that Beijing supports the idea in principle but it is too early for it "to become a reality".

Reports say there is an estimated 10 billion yuan circulating in Hong Kong, much of it in receipts from mainland tourists' spending.

Conducting yuan business would include allowing local Hong Kong banks to take deposits, provide remittance services and issue credit cards.

(CRI September 19, 2003)