Hsbc rmb internationalization pdf

Tighter capital controls in 2017 slowed the progress of renminbi internationalisation, as chinas outward investment dipped. You may check the account details through our internet banking platform or mobile banking application, contact our customer service hotlines or any hsbc. Estimate of rmb daily average fx turnover is based on a turnovertotrade ratio of 0. Chinas attempts to internationalize the renminbi rmb have significant implications. With the internationalisation process steaming ahead, there is an increasing number of routes to raise capital via renminbi denominated securities. Chinas renminbi rubbing shoulders with the us dollar. In 20, the rmb was the 8th most traded currency in. Rmb internationalization accelerated in 2009 when china established the dim sum bond market and expanded crossborder trade rmb settlement pilot project, which helps establish pools of offshore rmb liquidity.

The internationalisation of rmb is a strategically important topic for financial institutions. You are leaving the hsbc commercial banking website. The benefits are already significant for those who have switched their trade currency to rmb, including. April 2012 hsbc s initiative signals they are looking at taking a key position in rmb whether it be in bond issuance or in banking services. With our global experience, local knowledge and our specialized teams, hsbc can help your company achieve its ambitions. Since the late2000s, the peoples republic of china prc has sought to internationalize its official currency, the renminbi rmb. Transfers and payments forms and document download hsbc. In the next few years, policy support for a recovery in external economic activity will be biased in favour of belt and road initiative bri countries, driving demand for crossborder renminbi. Rmb fixed income is a subfund of the hsbc global investment funds, a luxembourg domiciled sicav. August 2011 hong kong, rmb internationalization hsbc. Rmb internationalisation capturing the rise of the. This is the second time hsbc has won the title, since the award was launched in 2017.

Rmb adoption has grown steadily over the years driven by a. Payment, settlement and transfer services are not available for this account for permanent residents of hong kongmacau special administrative region or taiwan residents only. Hsbc was named the best overall international bank for the belt and road initiative bri in the 2019 asiamoney new silk road finance awards, demonstrating the banks success in delivering on its strategic commitment to the bri. Rmb internationalisation chinas government expects half of all chinese foreign trade to be settled in rmb by 2020. Hsbc estimate if rmb fully convertible daily avg turnover usdbn note. Currency internationalisation and the canadian renminbi hub. In the next few years, policy support for a recovery in external economic activity will be biased in favour of belt and road initiative bri countries, driving demand for crossborder renminbi services. This drives the demand for travelling, health, education and consumer goods. The chinese renminbi rmb is growing as an international currency. Hsbc could help your business make the most of trading in rmb why the rmb matters as mainland chinas 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 crossborder capital flows. Hsbc completes first rmb remittance for chinese working abroad. When hsbc conducted its first renminbi rmb internationalisation study in 2012, the prospect of chinas renminbi rubbing shoulders with the us dollar or euro was attainable but we recognised that the path to the currencys maturity was not entirely clear. This hotline serves only commercial banking customer. Rmb internationalisation building a global investment.

Hsbc rmb internationalization pdf when hsbc conducted its first renminbi rmb internationalisation study in, the prospect of chinas renminbi rubbing shoulders with the us dollar or. Chinas growth and the rmb corporate banking hsbc uk. As of enddec 2017, rmb is the 5th most active currency for international payments 4, up from 20th at 20125. It is suitable for individuals with the following current or future needs.

Renminbi rmb internationalisation survey to gain a better understanding of what company attitudes and outlooks are toward using the currency for crossborder transactions. Hsbc rmb time deposit promotion offers bonus interest rate to deliver optimal returns on your investments in managing short and longterm financial goals. Access your account 24 hours a day via hsbc personal internet banking or phone banking. With your rmb business card, international sos can assist you to settle inpatient medical expenses on your behalf with select network hospitals in mainland china. Rmb internationalisation begins 2010 china permits the free circulation of rmb outside the mainland. Our local and global connections are well suited for delivering a range of rmb solutions to support your business needs.

As discussed, there is a clear consensus among experts. Due to the 20082009 global financial crisis, the chinese government began to promote renminbi rmb internationalization in order to raise its international status, decrease reliance on the us. Hsbc has helped a chinese national working in australia to transfer income back to china in renminbi rmb, becoming the first international bank to provide such a service after the country recently relaxed its rules on crossborder rmb transactions to further encourage. Figure 2 hsbc global markets, rmb business development, asia pacific, rmb. Rmb internationalization hk as offshore rmb centre. Hsbc rmb internationalization pdf when hsbc conducted its first renminbi rmb internationalisation study in, the prospect of chinas renminbi. This includes using rmb for risk management and foreign exchange hedging, cash and liquidity management, financing, and investments. Hsbc is the leading international bank in korea in supporting local corporate customers and international subsidiaries of foreign investors. Through our global network of offices we can assist our overseas clients with access to the renminbi in a. Branch code is the first 3 digits and the following 9 digits 7 are account number. Singapore dollar deposits of nonbank depositors are insured by the singapore deposit insurance corporation, for up to sgd75,000 in aggregate per depositor per scheme member by law.

The promotion is valid from 2 december 2019 to 31 december 2019. We also explain the role of the shanghai free trade zone, established in 20. Follow the developing story with our unique market analyses. Presentation for the chinabritain business council and hsbc. Pdf the aim of this paper is to examine rmb internationalization current. Hsbc completes first rmb remittance for chinese working. Hsbc continues to be one of the leading international bank for rmb business for our clients via. Currency conversion risk the value of your rmb deposit will be subject to the risk of exchange rate fluctuation. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured. The internationalization of the renminbi rmb by 2015, about 30% of chinas crossborder trade is expected to be settled in rmb, vaulting it from the 7 th to 3 rd most used currency in. If you choose to convert your rmb deposit to other currencies at an exchange rate that is less favorable than that in which you made your original conversion to rmb, you may suffer loss in principal. Renminbi internationalisation gathers pace insights hsbc.

All life insurance plans are underwritten by hsbc life international limited. First international bank to complete in all 6 continents largest global rmb capability platform in 39 markets personal banking launched in 7 asia pacific sites hk, macau, singapore, japan, malaysia, brunei, new zealand. Hsbc foreign currency account is a good option to hedge against exchange rate fluctuations by keeping money in the account until the rate is beneficial to you. The hongkong and shanghai banking corporation limited is an insurance agent authorised by hsbc life international limited. Internationalisation study in 2012, the prospect of. Viral milestone in rmb internationalisation hsbc predicts that 50 per cent of chinas trade will be settled in yuan in 2020, up from 3 per cent in 2010. Catalysts for change growth drivers growing middle class according to hsbc global research, by 2025, more than 60% of the urban population will be classified as middle class. Renminbi rmb internationalisation survey to gain a.

A number of charts and statistics were performed to support chinas efforts on rmb internationalization. Renminbi services rmb services your seal of financial success in mainland china. Hsbc, for example, became one of the first foreign commercial banks to issue a socalled panda bond a renminbi denominated bond issued in china by a foreign company. This paper explores this first phase of rmb internationalization by examining 1 the. Rmb internationalisation implications of rmb inclusion in the sdr basket the imfs decision to include the rmb in the sdr basket has a very strong symbolic character and is a key milestone in chinas journey towards a full liberalisation of their currency and capital market. To facilitate international investors access to these instruments either onshore or offshore hsbc has put in place a dedicated onboarding process in line with the circular. Individuals who are employed overseas or receive regular income abroad.

Renminbi internationalisation global commercial banking hsbc. A fundamental constraint for renminbi internationalization is the prcs capital controls. The rmb internationalization strategy and key implementation. Hsbc is at the forefront of both offshore and onshore. Overseas renminbi savings account for receiving rmb remittance from hong kong, macau or taiwan and providing domestic cash withdrawal services only. Hsbc renminbi investment licence, financial times, july 26.