FOREIGN EXCHANGE | Staff Reporter, China

HSBC gets nod for RMB-SGD direct onshore trading in China interbank forex market

This reflects the acceleration of RMB internationalization.

HSBC has received regulatory approval to be one of the first market makers for direct onshore trading of the renminbi (RMB) and the Singapore dollar (SGD) in China’s interbank foreign exchange market, demonstrating its continued leadership in RMB internationalisation.
According to a release from HSBC, the Bank will participate in the trading when it starts.

Guy Harvey-Samuel, Group General Manager and CEO for Singapore at HSBC, said: “We welcome this latest move in RMB internationalisation that will encourage more trade denominated in RMB in the region and open up business opportunities for Singapore corporates with China.

It will also present cost savings to our customers through direct currency conversion and hedging on FX risks. HSBC is delighted to be one of the first market makers for the direct onshore trading and we will continue helping businesses take advantage of opportunities from the progressive internationalisation of the RMB.”

Ryan Song, Head of Markets for China at HSBC, said: “Direct trading between RMB and Singapore dollar reflects the acceleration of RMB internationalisation, as well as RMB’s growing prominence in global currency markets. It will also support the growing demand for the currency in Southeast Asia, where Singapore serves as a regional RMB gateway.”

HSBC is one of the most active players in China’s interbank foreign exchange market. It is the only foreign bank approved for all RMB direct trading pairs available to date.

It was among the first market makers when direct RMB convertibility was launched for the Japanese yen, Australian dollar, New Zealand dollar, British pound and euro.

The start of direct trading between RMB and SGD follows the launch of direct conversion between RMB and euro on 30 September.
The Bank has been a champion of RMB internationalisation since the beginning of this historic process.

It has established RMB trade capabilities in over 50 markets globally, was the first international bank to settle RMB trade in six continents, led the first ever offshore RMB-denominated bond and IPO and was the number one underwriter of Dim Sum bonds in 2013 - a position it retains in 2014.

In Singapore, HSBC issued the first bond in the country’s offshore RMB market, on the historical start date of yuan clearing in May 2013.

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