Also obtained status as a domestic agent bank to open onshore RMB accounts for overseas banks participating in the pilot program
HSBC Bank (China) has launched settlement services in renminbi (RMB) for cross-border trade in Shanghai, Shenzhen, Guangzhou and Dongguan – key cities in the pilot program permitting the use of RMB in cross-border trade transactions.
Reportedly, 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. The bank has set up its first onshore RMB account for its Hong Kong-based parent company – The Hongkong and Shanghai Banking Corporation.
Chris Lewis, head of trade and supply chain, Greater China, said: “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.”