HSBC Bank (China) Company Limited announced today that it has launched settlement services in renminbi (RMB) for cross-border trade in Shanghai, Shenzhen, Guangzhou and Dongguan - key cities in the pilot programme permitting the use of RMB in cross-border trade transactions.
HSBC China offers the widest geographic coverage of this expanded RMB service among all foreign banks in the Mainland.
The Bank has completed its first RMB-denominated trade settlement remittance and launched its first cross-border RMB-denominated documentary credit (DC) service for five eligible local companies in the Yangtze River Delta (YRD) and the Pearl River Delta (PRD) regions.
HSBC China has also obtained status as a domestic agent bank and is able to open onshore RMB accounts for overseas banks participating in the pilot programme. The bank has set up its first onshore RMB account for its Hong Kong-based parent company - The Hongkong and Shanghai Banking Corporation Limited.
Chris Lewis, Head of Trade and Supply Chain, Greater China commented "HSBC is 'the world's local bank' and the leading bank for international business in China. With our global reach and local expertise, we are well placed to help both importers and exporters efficiently and cost effectively manage both sides of the same trade transaction. This latest development will enhance the bank's ability to support both the importer and exporter conducting RMB cross border trade business."
The RMB settlement pilot programme applies to trade between certain regions in mainland China, including Shanghai and select cities in Guangdong province, and the Hong Kong SAR, the Macau SAR and member countries of the Association of Southeast Asian Nations (ASEAN).
In July, HSBC China's parent company - The Hongkong and Shanghai Banking Corporation Limited - became the first international bank in Hong Kong to settle a cross-border trade in RMB in cooperation with its strategic partner Bank of Communications.