HSBC has completed its first UK cross border renminbi (Rmb) trade settlement transaction.
The transaction was for hand and garden tool business Neill Tools which is based in Sheffield, England.
Stuart Nivison, head of trade and supply chain for HSBC Europe, comments: “In the current economic environment, UK companies are increasingly looking overseas for new opportunities and coming to us to help them mitigate the risks involved.
“The volume of Rmb-denominated trade in the UK will inevitably increase and we expect to see increasing demand for offshore Rmb trade finance and other Rmb products as a result.”
Patrick Dyson, the chief financial officer of Neill Tools’ parent group Spear and Jackson, adds: “A global business like ours relies on its financial providers for help in navigating an increasingly complex international business environment and for access to the most up-to-date and innovative financial solutions. We were delighted with HSBC’s proposal that we consider Rmb trade settlement for this particular transaction.”
HSBC anticipate that in five years, 30% of China’s international trade will be completed in Rmb, a goal made attainable by a number of international banks gaining permission from the Chinese government to trade in Rmb, particularly within the Association of Southeast Asian Nations.
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