HSBC Becomes First Foreign Bank to Settle Cross-border Trade in Chinese Currency
HSBC, in co-operation with its partner Bank of Communications (BoCom), has become the first foreign bank to settle a cross-border trade in renminbi (RMB).
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 (ASEAN).
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.