The move will provide the lender widest geographic RMB trade coverage among all foreign banks in China.
HSBC Bank (China) Company Limited (“HSBC China”) Thursday announced that it has rolled out Renminbi (RMB) cross-border trade settlement services to all of its branches across 24 cities in China. HSBC now has the widest geographic coverage of RMB cross-border trade services among all foreign banks in the Mainland.
This achievement came only weeks after China’s announcement in mid-August to expand the RMB cross-border trade settlement programme, formerly a pilot initiative limited to a handful of designated provinces, to all areas across the country, according to an HSBC report.
Noel Quinn, HSBC’s Regional Head of Commercial Banking Asia-Pacific, said: “As trade between China and the rest of the world grows, many Chinese businesses will offer incentives to those who are willing to settle in RMB. Taking advantage of this new and exciting development is key for international businesses who want to benefit from China’s trade growth. As Asia’s global bank, rooted in China, HSBC has the right network, products, experience and infrastructure in both the Mainland and across the world to deliver the RMB’s international potential to customers with global ambitions.”
HSBC China was one of the first foreign banks participating in the RMB cross-border trade settlement programme when it was launched in 2009. Over the years, HSBC has facilitated the use of the RMB amongst customers conducting trade with overseas partners, helping them mitigate foreign exchange risks and save on transaction costs. By 2015 over half of China’s trades with emerging markets are expected to be settled in RMB.
Magnus Montan, Head of International Business, HSBC China, said: “We are seeing the appetite for RMB as a trade settlement currency grow as businesses become more aware of its benefits. According to China’s official statistics, RMB-settled trade accounted for over 8% of China’s total trade in the first half of this year, compared to only 2.5% for 2010. The offshore RMB market is equally exciting with offshore RMB deposits expected to reach RMB1 trillion by the end of 20111. With RMB trade services in over 50 markets globally, HSBC is well positioned to unlock the international potential of RMB for customers across the world.”
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