HSBC, in cooperation with its strategic partner Bank of Communications (BoCom), has completed its first RMB-denominated trade settlement remittances with Shanghai. It also conducted its first cross-border RMB denominated documentary credit (DC) transaction.
The pilot program applies to trade between certain regions in mainland China, including Shanghai, the Hong Kong SAR, the Macau SAR, and member countries of the Association of Southeast Asian Nations (ASEAN).
Vincent Cheng, Chairman of HSBC, said: “We are pleased to join hands with our strategic partner BoCom to participate in this important initiative to promote international trade and establish the RMB as a regional clearing currency. Through BoCom’s extensive network in mainland China and HSBC’s international franchise and expertise in trade finance, we are creating benefits for our customers at a time when supporting their businesses and international trade have become all the more important.”
The joint initiative between HSBC and BoCom is expected to assist Chinese exporters to grow their international trade with partners in Hong Kong, Macau and ASEAN, by helping reduce foreign exchange risk.
