HSBC, in cooperation with Bank of Communications or BoCom, became the first foreign bank to settle a cross-border trade in renminbi.HSBC in Hong Kong completed its first RMB-denominated trade settlement remittances with Shanghai and also conducted its first cross-border RMB-denominated documentary credit (DC) transaction.These transactions are part of the Chinese government's pilot programme to permit the use of RMB in cross-border trade. The pilot programme applies to trade between certain regions in mainland China, including Shanghai and some cities in Guangdong province, and the Hong Kong SAR, the Macau SAR and member countries of the Association of Southeast Asian Nations. "We are pleased to join hands with our strategic partner BoCom to participate in this important initiative to promote international trade and establish the RMB as a regional clearing currency," said Vincent Cheng, Chairman of The Hongkong and Shanghai Banking Corporation Limited. "Through BoCom’s extensive network in mainland China and HSBC’s international franchise and expertise in trade finance, we are creating benefits for our customers at a time when supporting their businesses and international trade have become all the more important."The joint initiative between HSBC and BoCom will assist Chinese exporters looking to grow their international trade business with partners in Hong Kong, Macau and ASEAN by helping reduce foreign exchange risk.Chris Lewis, Head of Trade and Supply Chain, Greater China, HSBC, said: "This new offering demonstrates our commitment to our customers in cross-border trade. In the current environment, with rising currency risk concerns, our customers are increasingly looking overseas for new opportunities and are looking at us to help them mitigate the risks involved."
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