HSBC facilitates first two way RMB transaction between Taiwan and China
In an announcement, HSBC said it completed a two way cross border yuan debt transaction for a company incorporated in Taiwan. This was undertaken through a pilot program China had unveiled last August, making the said Taiwanese firm as the first foreign bank to complete this kind of transaction.
The city treasury of Kunshan in the Jiangsu Province received the approval last month to allow the conduct of a cross-border two way yuan lending facility for companies from Taiwan. This facility would enable these companies to use their onshore and offshore yuans with more flexibility and much more efficiently.
The facility would also assist companies in the efficient allocation of funds denominated un the yuan within a corporage group. This would help lessen their offshore yuan funds more and gain more returns on capital outlays.
According to HSBC China Deputy Chairman Helen Wong, "The cross border RMB pilot programs in Kunhan will further enhance RMB usage offshore and encoutage RMB flow between onshore and offshore markets."