Morgan Stanley will be sued in US for selling false RMB bonds in Hong Kong with mainly Bank of China

Bank of China will sell RMB and their bonds in London with approval of British government while Hong Kong government is still covering up Bank of China was selling false RMB bonds created by Morgan Stanley with US sub-prime CDS inside in the year 2007,8 without punishment.

Octave Notes 21,22 created by Morgan Stanley were sold in Bank of China Hong Kong as false RMB bonds. Others were Octave Notes 15,16,17,18 and were mostly sold by Bank of China as false banks notes but underneath there were US sub-prime CDS.

Also :

Chinese Bank Declares RMB Business War Around the World

China continues to expand the global reach of renminbi RMB (also called CNY, or simply Yuan) amidst allowing direct RMB trading in Russia.

In December 2010, Bank of China (BOC) became the first China state-owned bank to offer RMB trading services for US companies and individuals. Before that, US companies and individuals can already buy and sell RMB through Western banks such as the Hong Kong and Shanghai Banking Corporation (HSBC).

Although this BOC move can promote the use of RMB in international trade, it still has quite a long way to make RMB an alternative reserve currency because Chinese government ultimately controls the RMB liquidity taps in offshore markets and investing in mainland assets is also under strict control.


HSBC has been very aggressively expanding its offshore RMB services around the world and already completed its first US cross-border RMB trade settlement transaction earlier on 30 September 2010.

Further on 8 October 2010, HSBC even settled trading of its first offshore RMB-denominated currency option, a better risk-hedging tool than RMB Non-Deliverable Forward (NDF) or Non-Deliverable Option (NDO) which are typically settled in USD rather than RMB.


With the RMB clearing bank status, BOC will be able to exert influence on RMB liquidity, exchange and interest rates in the US. Otherwise, we are afraid that Chinese regulators may not have enough confident to further accelerate the pace of RMB full liberalization.

The RMB business war is of course not limited in the US, as BOC's overseas branches including London, Frankfurt, Tokyo, Canada, Singapore and Malaysia etc also began offering similar RMB services since early 2010.

Particularly in London, British customers can exchange for RMB not only in international banks like HSBC and BOC. Even the UK Post Office has also started providing RMB services with a daily exchange limit of GBP 5K since January 2011.