From Asia Times Online:
Although the yuan is not yet fully convertible, it has been increasingly in circulation in neighboring regions in recent years. As an international financial center close to the Chinese mainland, Hong Kong witnesses the most frequent use of the yuan.
In the “2004 Blue Book of Finance – China: Banking and Financial Markets Development” compiled by the Institute of Financial Research under the Chinese Academy of Social Sciences, researchers have found extensive underground financial activities between Shenzhen in south China’s Guangdong province and Hong Kong and their scale – mainly conversions between the yuan and the Hong Kong dollar – tremendous.
