The Hong Kong Special Administrative Region (HKSAR) government said Wednesday it was prepared for becoming the first city outside the Chinese mainland to operate a pilot program using Renminbi for trade settlements.

The HKSAR government said it welcomed the decision of the Chinese State Council to introduce the pilot program for using yuan in cross-border trade settlements in mainland five cities such as Shanghai, Shenzhen, Guangzhou, Zhuhai and Dongguan.

"We ... have completed the necessary technical preparations for becoming the first place outside the mainland to operate the pilot program," the statement said, adding that it will work closely with mainland authorities to ensure its smooth operation.

The decision to launch the pilot program came after a meeting of the State Council on Wednesday, which also urged institutions concerned to decide on the rules.

Further details about when and how the program will start were not available.

China has earlier said it will launch pilot programs to settle trade in yuan, including between certain mainland cities and Hong Kong, which has been aspiring to be the first city outside the mainland to run such a pilot program.

(Xinhua News Agency April 9, 2009)