The Qualified Domestic Institutional Investor scheme, or QDII, introducing in the Chinese mainland, provides new opportunities for RMB financial services in Hong Kong, said the Bank of East Asia Wednesday.

The bank said in its newly published analysis that RMB business in Hong Kong received a further boost after Chinese Premier Wen Jiabao indicated that Hong Kong's imports from the Chinese mainland for local use would be settled in RMB, which opens the door for other businesses to be settled in RMB in the future.

It predicted that as long as Hong Kong is able to prove that the new measures have no significant adverse impact on the mainland financial system, more RMB investment products could be introduced in Hong Kong.

The analysis said the opening of RMB services in Hong Kong is a win-win proposal. It will make the territory as a financial intermediary for the mainland market, while the mainland can use Hong Kong as a testing point for the reform of its financial industry.

Meanwhile, it reminded the investors in Hong Kong since the Chinese mainland is ready to open up its financial market, Hong Kong must be ready to respond to the upcoming challenges.

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