News Release
6 September 2013
HSBC IS THE FIRST FOREIGN BANK TO CONDUCT RMB CROSS-BORDER INTRAGROUP TWO-WAY LENDING IN CHINA
HSBC today became the first foreign bank in mainland China to successfully complete a
two-way cross-border RMB lending transaction under a new pilot programme in Kunshan.
The transaction was completed for Kunshan President Enterprises Food Company Limited
(Kunshan President), a subsidiary of Uni-President Group.
The city of Kunshan, in Jiangsu Province, was approved by regulators in August to launch a
series of cross-border RMB pilots via its "Kunshan Deepen Cross-Strait Industrial
Cooperation Experimental Zones" which includes RMB cross-border intra-group two-way
lending for Taiwanese corporates in the zone.
Helen Wong, Deputy Chairman, President and CEO of HSBC China, said: “The crossborder RMB pilot programmes in Kunshan will further enhance RMB usage offshore and
encourage RMB flow between onshore and offshore markets. Two-way cross-border RMB
lending enables corporates to utilise their onshore and offshore RMB funds more efficiently
with better flexibility, optimise allocation of intra-group RMB funds, reduce external
borrowing, and improve returns on capital. Combining our wealth of experience in crossborder RMB business with our extensive network and expert teams in mainland China and
Taiwan, HSBC is well-placed to help Taiwan-invested corporates in the pilot zone to
conduct this new business and meet their demand for managing RMB funds.”
HSBC China has set up a master account for cross-border RMB two-way lending for
Kunshan President, a prominent Taiwan-invested company in Kunshan and helped it obtain
regulatory approval for an intra-group two-way lending quota totaling RMB 1.49 billion. The
first cross-border transaction has been completed, with RMB 10 million transferred to this
master account from its related overseas company.
Since its entry into mainland China in 1992, Uni-President Group has invested in around 50
companies, predominantly in the food industry. The company posted revenues totaling RMB
21.4 billion in 2012, and have a strong demand for RMB funds. HSBC’s services will enable
Kunshan President to more efficiently utilize RMB funds from its member companies in
mainland China and overseas.
This information is issued by
The Hongkong and Shanghai Banking
Corporation Limited
Registered Office and Head Office:
1 Queen’s Road Central, Hong Kong
Web: www.hsbc.com.hk
Incorporated in the Hong Kong SAR with limited liability
John Li, President and Chief Executive Officer, HSBC Bank (Taiwan) Limited, said: “The
pilot measures targeting Taiwanese corporates provide a channel for the repatriation of
Taiwan’s fast-growing RMB funds, while offering new opportunities in RMB treasury
business for Taiwanese banks. As a result, Taiwan’s emerging offshore RMB market will
receive a boost and the new policy move will make cash management more convenient and
efficient for Taiwanese companies.”
As part of the pilot zone for industry cooperation between mainland China and Taiwan, a
range of pilot projects for cross-border RMB services was approved in August. These
include two-way RMB lending to facilitate cross-border RMB lending and borrowing at the
inter-company level for the pilot zone’s Taiwanese companies which can now employ
surplus funds to support business growth and better meet their expansion needs in the
Mainland. This innovative initiative will also make the establishment of cross-border RMB
cash pools a feasible proposition.
At the same time, HSBC has also completed its first cross-border RMB remittance for
individuals, another pilot initiative that has been approved for the Kunshan Experimental
Zone. HSBC helped an overseas resident in the Kunshan Experimental Zone transfer his
RMB income to his RMB account in Taiwan. This cross-border RMB remittance service,
under the personal current account, provides greater convenience to mainland residents,
Hong Kong/Macau and Taiwanese customers, as well as foreigners, in the pilot zone with
cross-border remittance needs.
HSBC has been a leading international bank in cross-border RMB business and remained
at the forefront of market developments. With an RMB service network covering more than
50 countries and territories around the world, HSBC was the first international bank to
perform cross-border RMB settlement in six continents. It has also been named, for the
second consecutive year, the “Best Provider of Offshore RMB Products and Services” by
Asiamoney, one of Asia’s leading finance magazines.
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Notes to Editors:
HSBC Commercial Banking
For nearly 150 years we have been where the growth is, connecting customers to opportunities. Today, HSBC
Commercial Banking serves businesses ranging from small enterprises to large multinationals in over 60
developed and faster-growing markets around the world. Whether it is working capital, trade finance or
payments and cash management solutions, we provide the tools and expertise that businesses need to thrive.
With a network covering three quarters of global commerce, we make HSBC the world’s leading international
trade and business bank. For more information see www.hsbc.com/1/2/business-and-commercial
The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group, which
serves around 55 million customers through four global businesses: Retail Banking and Wealth Management,
Commercial Banking, Global Banking and Markets, and Global Private Banking. The Group serves customers
worldwide from around 6,600 offices in 80 countries and territories in Europe, Hong Kong, Rest of Asia-Pacific,
North and Latin America, and the Middle East and North Africa. With assets of US$2,645bn at 30 June 2013,
the HSBC Group is one of the world’s largest banking and financial services organisations.
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