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FIRST UK-BASED BANK TO LAUNCH A FULL SERVICE CHINESE RENMINBI PROPOSITION

Facilitates the development of trade relationships between the UK and mainland China

HSBC has launched a new service enabling UK businesses to open a UK domiciled Renminbi (RMB) account which can then be used to trade with and make payments to mainland China in the country’s own currency.

HSBC’s UK-based RMB Proposition includes:-

o International RMB Business Accounts domiciled in the UK

o Direct payment capability

o Full trade related services (Documentary Credits, Collections, etc)

o Foreign exchange transacting and hedging

All delivered via HSBCnet, the bank’s award-winning internet banking platform.

China's economy continues to expand rapidly and, along with it, commercial ties with the UK. HSBC expects this growth to generate further significant opportunities for businesses looking to develop their products and services in new markets. Recent deregulation has further opened the Chinese market and enables an increasing number of Chinese trade partners to receive cross border payments in their local RMB currency, in addition to their capacity to make cross border RMB payments.

Therefore, commercial contracts can now be agreed in RMB, allowing Chinese suppliers to invoice and receive settlement from UK buyers in local currency, which enables them to avoid foreign exchange risks and costs. This is also likely to benefit UK businesses by enabling them to negotiate favourable terms for the goods and services they are purchasing.

Jacques-Emmanuel Blanchet, Head of UK Commercial Banking at HSBC said:

“As the leading international bank, HSBC is committed to providing business customers with the tools they need to build trading relationships across the globe and our new UK-based Renminbi proposition highlights this.

Jacques-Emmanuel added: “The Renminbi is set to become the third largest international currency and while only a small number of UK businesses currently trade directly with mainland China in Renminbi, we expect this to increase significantly in the near future.”

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