RMB round-up: PBoC in fresh push for RMBi, HSBC eyes BRI business with Warsaw desk, ABC gets green light for Hanoi, Macau branches
The People’s Bank of China announces new rules to promote cross-border RMB transactions, HSBC plans to launch a new service in Poland to capture business opportunities related to the Belt and Road Initiative, and Agricultural Bank of China obtained approvals for new branches in Southeast Asia.
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- The PBoC has called on Chinese banks to step up their efforts to promote the usage of renminbi abroad.
“In accordance with the cross-border renminbi policy, [banks should] innovate renminbi financial products, strengthen their financial services, and fulfil clients’ real and compliant demands for cross-border RMB business,” the PBoC said in a January 5 announcement.
The central bank also asked banks to ensure that foreign investors can freely remit their profits from onshore investments, including share dividends.
Separately, the PBoC said Chinese companies with offshore renminbi incurred from the issuance of shares or dim sum bonds could bring RMB proceeds back into China, in accordance with their needs. All of the rules in the announcement came into effect on January 5.
Belt and Road:
- HSBC is setting up a business desk in Warsaw to promote trade and investment between China and Central and Eastern Europe, the bank said in a January 4 press release. The desk will join 23 other business desks in helping Chinese companies identify business opportunities and access financial products, including those denominated in renminbi.
In particular, the new desk will cater to the needs of Chinese companies involved in the Belt and Road Initiative, said David Liao, president and CEO for China at HSBC.
“We are seeing increasing demand from both Chinese firms and their overseas partners involved in Belt and Road projects for banking services, such as strategic advisory, financing, hedging solutions, and cash and liquidity management,” said Liao.
- Agricultural Bank of China has won regulatory approvals to open new branches in Hanoi and Macau, the bank said in a January 3 announcement. Vietnamese authorities gave ABC the go-ahead on December 28. The Hanoi branch will provide financial services for China and Vietnam’s co-operation in infrastructure, trade, energy and agriculture.
Meanwhile, the approval for the Macau branch came 10 days earlier. This branch will focus on wholesale banking, and help ABC reach Portuguese-speaking markets, said the bank.