China’s renminbi (RMB) is the third most-used currency in trade finance. HSBC could help your business make the most of trading in RMB.
among foreign banks in China's cross-border
RMB transaction volume
Source: People's Bank of China (February 2017)
As China’s trade with the rest of the world has expanded dramatically over the last 15 years, its currency - the renminbi, has also internationalised and become a globally accepted currency enabling more cross-border capital flows.
The Belt and Road vision is to create the physical infrastructure, financial institutions and policy environment that will facilitate regional trade and cooperation, accelerating international use of the renminbi.
Helen Wong, Chief Executive, Greater China, HSBC China continues to enhance its financial infrastructure to increase the global usage of the renminbi.
Candy Ho Global Head of RMB Business Development, Markets, HSBC Renminbi (RMB) internationalisation has gone full steam ahead against the backdrop of the appreciation of the currency
- Quartz “BRICS” is not big enough for China’s global ambitions 26 Nov 2017
- Quartz China’s recent port acquisitions begin to link up to overland BRI projects 15 Nov 2017
- Quartz Despite the BRI push, much of Chinese foreign direct investment still centres on Germany, the UK, and France 15 Nov 2017
Why the RMB matters
China’s government expects half of all Chinese foreign trade to be settled in RMB by 2020
For companies outside of mainland China, using RMB could bring multiple benefits such as:
- Reduces foreign exchange and interest rate risk
- Improves liquidity and cash management
- Facilitates trade with suppliers and customers in China who prefer to settle in RMB
- Improves price transparency because mainland Chinese counterparts do not need to include exchange or currency hedging costs in their pricing access to finance and investment opportunities in RMB
HSBC’s presence along the trade corridor, as well as at both ends, accelerates the use of the renminbi as a global currency.
Douglas Flint, Group Chairman, HSBC
Does your business have a strategy for trading in the renminbi?
Speak to your HSBC relationship manager to find out more or email us.