Chinese Renminbi (RMB) Account
HSBC business customers can now open a UK-based Chinese Renminbi (RMB) account to carry out and settle RMB cross-border trade deals directly with China.
This follows partial deregulation of the Chinese market and the increasingly rapid growth of the RMB as a global currency. RMB trade settlements in Q1 2011 were 15% higher than the same period in 2010, and 20 times more than in 2009. By 2015 the expectation is that RMB will be a leading international currency.
China is already the world's second largest economy and the largest exporter of goods. We expect more Chinese trade partners will want to receive and make payments in RMB. It's also likely that we'll see more use of RMB for trade settlements globally.
What HSBC can offer
Now UK businesses can settle trade transactions in RMB, no matter whether the destination is outside China (offshore) or on the Chinese mainland (onshore).
To help business customers who want to use RMB we have a range of products and services they can use to carry out and settle transactions:
- UK-based RMB accounts for receipts and payments
- HSBCnet (our flexible online banking service) to carry out RMB trade settlement transactions*
- Trade finance for importers and exporters. This includes RMB documentary credits, documentary bill payments and guarantees. Customers can initiate and manage their trade finance needs by post, fax or through the Internet Trade Services (ITS) module on HSBCnet in the same way as they can do currently
- A full range of foreign exchange (FX) risk management solutions, including forward contracts and currency options
Benefits of using RMB for trade settlement
- Capacity to meet the requirements of Chinese customers or suppliers who may now ask for settlement in RMB. HSBC can offer this capacity through HSBCnet without the need for intensive manual procedures
- Opportunity to attract new customers and suppliers in China e.g. those who previously only wanted to trade in RMB in their home market
- Opportunity to negotiate better pricing and terms of trade with customers or suppliers in China. This is because with RMB settlement, Chinese businesses will not face foreign exchange transaction costs and currency fluctuation risks
*Clients must have access to HSBCnet in order to make RMB payments to mainland China electronically. These payments cannot be made through any other delivery channel . Business Internet Banking can not be used to send an RMB payment direct from an RMB account, or direct to China. However, Business Internet Banking can be used to make an RMB payment to any location outside of China provided the account debited is USD, GBP or EUR.
Strict legal restrictions and regulations exist in the People's Republic of China and apply to RMB payments made to mainland China. If you wish make payments to mainland China, you will be required to enter into a separate agreement which includes terms and conditions and charges applicable to this service. A copy can be provided upon request.
Click here for Frequently Asked Questions regarding our UK domiciled RMB Account
If you would like to discuss the RMB in further detail, then please contact your local Relationship Manager.
Important Links:
Business Banking terms and conditions
HSBCnet terms and conditions
Business Internet Banking Terms and Conditions
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