HSBC: Being RMB-ready Gives Competitive Advantage In China Trade

KUALA LUMPUR, July 14 (Bernama) -- In the global race to develop trade links with China, the readiness to do business in the renminbi (RMB), can give some exporters a vital edge over their rivals, a new HSBC Commercial Banking survey shows.

"Two-thirds of companies in mainland China and Hong Kong said foreign firms doing business with China gain financial and relationship advantages from using the RMB.

"Half the respondents from Singapore, 44 per cent from the United States and 42 per cent from the United Kingdom said they believed the RMB usage brought financial benefits, with less than a third of their German and Canadian peers sharing this view," according to the 11-market poll.

Meanwhile, more than half the United Arab Emirates respondents said they see business relationship benefits from RMB adoption, compared with 46 per cent in France and 40 per cent in Australia.

HSBC Bank Malaysia Bhd Head of Global Trade and Receivable Finance, Vincent Sugianto said the bank is currently promoting its the ability to sell or buy with Chinese companies in RMB, which is also known as the yuan.

"The settlement of goods and services in RMB will remove the FX risk exposure from the Chinese companies and hence, allow them to reduce their cost.

"The ability to trade in the RMB also allows Malaysian companies to tap into a wider customer base in China," he added.


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