HSBC Completes First International Renminbi Trade Settlement Transaction in Canada

Jan 19, 2011 | Corporate Member News

HSBC Bank Canada has completed the first Canadian international Renminbi (RMB) trade settlement transaction, following the extension of China’s RMB trade settlement pilot program in June 2010.

This inaugural transaction was completed for Maynards Industries, a global expert in industrial auction, appraisal and liquidation services with corporate headquarters in British Columbia.

Mark Watkinson, Executive Vice President, Commercial Banking and Regional President, Central and Eastern Canada, HSBC Bank Canada, said: “China is one of the fastest growing economies in the world, and as such, provides enormous business opportunities for Canadian companies doing business internationally. The ability to conduct trade in RMB may assist them in taking advantage of these opportunities. Through our global banking network, we are uniquely positioned to help our clients understand the considerations of conducting trade in RMB and navigate the evolving international business market.”

The RMB trade settlement pilot program, launched in July 2009, permits the use of RMB (China’s currency) in cross-border trade between five pilot cities in mainland China and member countries of the Association of Southeast Asian Nations (ASEAN). The program was subsequently extended to 20 provinces in mainland China and to all countries worldwide in June 2010.

Aaron Stewardson, Chief Operating Officer, Maynards Industries, said: “The opportunity to use RMB settlement will give Maynards valuable additional options when working with our network of China-based partners and clients. This successful first transaction reinforces HSBC’s industry leadership in international business finance practice.”

The HSBC Group has introduced RMB capabilities and products across much of its worldwide network and has completed a number of notable transactions. Some of the highlights include: the first international bank to complete RMB denominated trade settlements across all ASEAN sites, the first international bank to complete RMB trade settlement across six continents, the first foreign bank to issue RMB bonds in Hong Kong, the first international bank to offer RMB current account and cheque services, and the first to establish a RMB trade finance standard rate.

Watkinson added: “China’s continued, explosive growth in the world trade market will likely result in a significant increase in Chinese imports and exports being settled in RMB. As a global bank, it is imperative that we provide foreign exchange capabilities that will allow our Canadian clients to do business even more efficiently in China.”

About HSBC
HSBC Bank Canada, a subsidiary of HSBC Holdings plc, has more than 260 offices, including over 140 bank branches, and is the leading international and trade finance bank in Canada. With around 8,000 offices in 86 countries and territories and assets of US$2,418 billion at 30 June 2010, the HSBC Group is one of the world’s largest banking and financial services organizations. 

For further information:

Media enquiries:

Ernest Yee
Vice President, Corporate Affairs
HSBC Bank Canada
(604) 641-2973
Fabrice de Dongo
Senior Manager, Public Affairs
HSBC Bank Canada
(416) 868-8282

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