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RETAIL BANKING | Tony Chua, Hong Kong

HSBC releases new RMB investment product

Lender will launch RMB FX-linked deposits and preferential time deposit with 1.41% per annum rate.

HSBC is launching an enhanced renminbi (RMB) denominated investment product following Monday’s announcement on the new developments for RMB settlement. With over 160,000 integrated Commercial Banking account customers having RMB transaction capabilities, HSBC also recently launched RMB Business Internet Banking for its Commercial Banking customers as mentioned in an HSBC announcement. 

Mark McCombe, HSBC’s Chief Executive Officer for Hong Kong, said: “We are very encouraged by the numerous efforts made by government authorities lately to speed up the utilisation of the RMB in offshore markets. It is recognition that China’s currency has a mounting role in international trade and investment. As a leading international bank, with roots in both Hong Kong and mainland China, HSBC has championed the development of RMB business in the territory. We want to be quick off the mark to roll out new RMB-denominated offerings to ensure that we are well-positioned to offer customers a one-stop solution in RMB products and services more of which will be announced as soon as the regulations come into effect. In addition, HSBC will be offering a preferential time deposit rate of up to 1.41% per annum for customers who place new RMB funds with the Bank for a tenor of three to 12 months from 20 July.”

RMB-denominated investment products
As one of Hong Kong’s first RMB investment products, HSBC will launch RMB FX-linked deposits to provide customers alternative options for enhancing yields on their RMB deposits. The RMB FX-linked deposit offers a potentially enhanced yield based on a currency view, with interest payments tied to the performance of the RMB exchange rate against either the US dollar or HKD.

The above RMB-denominated investment product will become available to both HSBC Personal Financial Services and Commercial Banking customers from 20 July 2010. 

Preferential RMB Deposit Interest Rates
In addition to the new RMB-denominated investment product, HSBC customers can also access a preferential time deposit rate of up to 1.41 per cent per annum by placing new RMB funds with the Bank for a tenor of three to 12 months.

As the leading international business bank, HSBC has witnessed a substantial rise in cross-border transactions in the past few months. 

Recognising the need to support the growing cross-border needs of its customers, HSBC recently launched RMB Business Internet Banking on 12 July. HSBC currently has over 160,000 Commercial Banking integrated account customers with RMB transaction capabilities, equivalent to an estimated half of the territory’s 350,000 SME companies. 

Mr McCombe added: “HSBC was the first international bank to undertake a cross-border RMB settlement and the first to establish a RMB trade finance standard rate for reference. Taking advantage of our regional network, we have conducted RMB trade settlements across all ASEAN sites, the first bank able to do so in Asia. Reinforcing our presence as the leading international bank, we have established RMB trade settlement capability in 23 markets globally. Our first RMB Trade Settlement transaction in the UK is one of the earliest among international banks, soon after the Mainland authorities’ announcement to expand the Scheme to all countries and regions.

“With our 70 per cent share of the custody business for retail funds in Hong Kong, we now eagerly await regulations that will allow us to support the first batch of RMB funds.”

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