China Direct

HSBC continues to lead RMB internationalisation

 

HSBC has become one of the first market makers for direct onshore trading in China’s interbank foreign exchange market between the renminbi (RMB) and seven other currencies.

This is another landmark for the Bank, demonstrating its continued leadership in RMB internationalisation. Directing trading of the RMB with Danish Krone, Swedish Krona, Norwegian Krone, Hungarian Forint, Polish Zloty, Turkish Lira and Mexican Peso will help lower the foreign exchange costs of domestic companies in China and stimulate RMB use in cross-border trade and investments with counterparts in these seven countries.

HSBC is one of the most active players in China's interbank foreign exchange market, being the only foreign bank approved for all of the RMB’s direct trading pairs available to date.

Please read more here.

Celebrating CBI Member Success in China - August 2016

Dear CBI Members and partners,

Please find attached below the latest CBI Member Success Summary for August 2016. More than 37 CBI members are referenced covering sectors as diverse as Speedo swimwear to Universities. A full interactive summary document can be found at the bottom of the company list.

• Airbus
• Alstom
• AstraZeneca
• Atkins
• Benoy
• Birmingham City University
• British Airways
• Cardiff University
• Cheung Kong Graduate School of Business
• Deloitte
• Ford Motor Company
• HSBC
• Huawei
• Hytera
• InterContinental Hotels Group
• Jaguar Land Rover
• Jones Lang LaSalle
• Lancaster University
• London Stock Exchange Group
• MasterCard
• Middlesex University
• Mott MacDonald
• Norton Rose Fulbright
• Pentland Brands
• PwC
• Rolls-Royce
• Sheffield Hallam University
• Standard Chartered
• Swansea University
• UBS
• University of Birmingham
• University of Leeds
• University of Lincoln
• University of Manchester
• University of Nottingham
• University of Sheffield
• University of Warwick

Download CBI China, Celebrating CBI member success in China, August 2016

China chooses London for its first international sovereign RMB bond issue

 

China chose London for its first ever sovereign Renminbi (RMB) bond issued outside of China, underlining London’s status as the leading western RMB hub and a leading global financial centre.

 

Issued in London by the Chinese government, the bond is worth RMB 3 billion (approximately £300 million). The issuance cements London’s position as the leading western RMB hub and reinforces the UK’s ever-strengthening economic and financial relationship with China.

 

Please read more here. 

European Chamber releases 2016 China Business Confidence Survey

The European Chamber, in cooperation with Roland Berger, today released its annual Business Confidence Survey 2016. The survey finds that Beijing’s failure so far to deliver on promises that foreign-invested enterprises will enjoy a more open, competitive market has fostered mounting pessimism: a significant 41% of European companies are now re-evaluating their China operations and planning to cut costs, including through headcount reduction.

Although 47% also report that they plan to expand their operations in China, this represents a thirty-nine point decrease from 2013, when an overwhelming 86% of European companies were intending to do so. However, a clear majority of European business would likely increase their investment in China in the event of market access barriers being removed.

Please read the full press release here. The full download can be accessed here.

City of London welcomes appointment of Sir Danny Alexander as Vice President of AIIB

 

CBI member The City of London Corporation welcomed the appointment of Sir Danny Alexander as a vice-president at the Asian Infrastructure Investment Bank.

Mark Boleat, Policy Chairman for the City of London Corporation, said, “Sir Danny Alexander’s appointment as a vice-president at the Asian Infrastructure Investment Bank (AIIB) is a welcome announcement.

The experience he will bring to the table as the former Chief Secretary to the U.K. Treasury will be a real asset for the bank, and the City of London looks forward to supporting him in confirming the U.K.’s role as a key member of the institution.

The U.K. fully recognises the strategic importance of the AIIB, which is why we were the first major western country to back its creation last year.

The City of London matches that view and strongly endorses the AIIB as we believe the U.K.’s involvement can help to unlock enormous financial sector opportunities across Asia for British firms.”

Please read more here. 

CBI Member Successes in China - Snapshot of Year of the The Horse

 

Dear CBI members and strategic partners,

China Direct would like to share with you a snapshot of CBI members' successes in China through 2014. We hope that you found our new format easy to use, visual and informative and wish you all every success for the forthcoming year of the sheep.

Please do keep sending us your updates and press releases so that your business can also be highlighted in 2015.

Thank you.

Download CBI Beijing, Member Milestones in China, 2014

UK first to issue non-Chinese RMB Bond

The U.K. government successfully issued a sovereign bond in China’s currency, the Renminbi (RMB), becoming the first western country to do so and issuing the largest ever non-Chinese RMB bond.

The RMB 3 billion bond, which is the equivalent to approximately £300 million, has a maturity of three years and delivers on the Chancellor’s announcement at the recent annual U.K.-China economic summit in London that the government intended to issue an RMB bond. It is the world’s first non-Chinese issuance of sovereign RMB debt and will be used to finance Britain’s reserves.

Currently, Britain only holds reserves in U.S. dollars, euros, yen, and Canadian dollars, so today’s issuance signals the RMB’s potential as a future reserve currency.

British Consul Caroline Wilson addresses LSE Forum on RMB in Hong Kong

Earlier this week, British Consul General to Hong Kong Caroline Wilson addressed the London Stock's (LSE) Greater China Forum event on the topic of London as an RMB offshore centre.

This was the first time that the Forum—the LSE's flagship issuer and investor event in Asia for 2014—was held in Hong Kong. The Consul General explained that the RMB is a priority area for the U.K. Government and outlined the milestones that the U.K. has passed in 2013 and 2014 in establishing itself as the second global RMB hub after Hong Kong, including a currency swap line agreement, receiving the first RQFII quota granted outside of Greater China, and seeing the first European RQFII funds listing on the LSE at the start of 2014.

Commenting on the striking results, the Consul General said, "London's share of the global RMB market jumped from 9% at the end of 2012 to 15% by April of this year. Given the pace of growth in the RMB market overall, this means the volume of RMB activity taking place in London grew by around 150% during 2013."

Please click here to read the full press release by the British Consulate General Hong Kong.

CBI Member China news round up featuring Bentley, M&S, Pinsent Masons, Burberry, Thales and City of London

 

   
CBI member Bentley Motors recently released its results for 2013, reporting a 19% increase in global deliveries in 2013. 10,120 vehicles were delivered, the highest figure in Bentley's 95-year history.

China remained Bentley's second-biggest market, with 2,191 cars delivered in total over the year.

Dr. Wolfgang Schreiber, Bentley's Chairman and Chief Executive, said, "2013 marks our fourth consecutive year of double-digit growth, establishing ourselves as the most sought after luxury car brand in the world. We continue to win new customers and we are confident that 2014 will be another successful year for Bentley. People all over the world love the unique combination of luxury and performance of our cars."

Please click here to read the full results for Bentley.

CBI member Marks & Spencer (M&S) recently released its interim management statement for the third quarter of 2013/14, reporting that its international business continued to perform well, with strong performance across most of the countries it trades in, especially in its key markets in India and China which delivered double-digit growth.

Please click here to read the full results for M&S.

CBI member Pinsent Masons recently announced that it had advised Quam Capital Limited and the underwriters on the HK$100 million (£7.9 million) placing of shares and listing of U Banquet Group Holding Limited, a full-service Chinese restaurant chain operator in Hong Kong specialising in the provision of one-stop Chinese wedding banquet services, on the Growth Enterprise Market of the Hong Kong Stock Exchange.

Please click here to read the full press release by Pinsent Masons.

CBI member Burberry recently released its interim results for the six months ended on 30 September 2013, reporting that with double-digit comparable store sales growth in mainland China, the company continued to see the benefit of its investment in this market following the acquisition three years ago.

20 of the 50 acquired stores have been closed, and 41 stores opened, giving a total of 71 stores in 36 cities. Today, the new, larger stores significantly outperform the acquired stores, reflecting better locations, merchandising, customer service, and use of in-store technology. Store portfolio plans are evolving to meet changing luxury consumer behaviour. Mens, childrens, travel retail, and digital remain attractive growth opportunities in China.

Please click here to read the full results for Burberry.

CBI member Thales recently announced that China Eastern Airlines' new Airbus single aisle fleet will fly with Thales' newest avionics solutions. The selection includes surveillance systems, flight management systems, and head-up displays.

Daniel Malka, Vice President and General Manager Thales Avionics Services Worldwide, said, "China Eastern, already one of our main customers for FMS systems, has now become our largest customer for T3CAS Surveillance Systems and Head-Up Displays in China, which we feel will lay the foundations for future ATM requirements in the region."

Please click here to read the full press release by Thales.

CBI member The City of London recently welcomed the issuance of Bank of China London's 2.5 billion RMB-denominated bonds and the granting of Ashmore's RQFII licence to invest directly in China's markets as positive signs of the continued development of London's RMB market.

Mark Boleat, Policy Chairman for the City of London, said, "The City of London views today's Bank of China RMB bond issuance as further demonstration of London's comprehensive range of RMB products and services and the financial sector's continued dedication to meeting the needs of U.K. and European corporates.

"Earlier this week, it was announced that Ashmore has been granted an RQFII licence as part of the London allocated quota of RMB 80 billion announced in October. This is the first western firm to receive this allocation, and we hope to see more announcements of this kind in the coming months, to allow more investment into China and encourage increased capital flows between the U.K. and China.

"2013 was a great year for London's RMB market, with data produced by SWIIFT showing that 62% of RMB trading outside of China and Hong Kong is done in the U.K., and an important year for the internationalisation of the RMB globally. This week's announcements give us further grounds to expect this to continue in 2014, and the City of London RMB initiative will continue to support market developments such as these, which strengthens the U.K.'s position as a leading RMB centre."

Please click here to read the full press release by the City of London.

RMB Internationalisation - HSBC leading the way in China

 

[Image courtesy of www.hsbc.com.cn]  

CBI member HSBC recently announced the signing of its first offshore receivables finance agreement denominated in RMB, which brought two Hong Kong and U.K. companies together in a deal highlighting the Chinese currency's growing role in cross-border trade.

HSBC agreed to provide Milagros China Ltd. with a US$1.5 million factoring facility that enables the Hong Kong-based manufacturer and vendor to invoice, fund, and settle sales to U.K.-based Debenhams Retail.

HSBC Global Research estimates that approximately US$2 trillion, or one-third of China's annual trade, will be settled in RMB by 2015.

Herbert Lam, Director of Milagros China, said, "Switching to an RMB facility is a win-win move for us and for Debenhams. Most of our costs are in RMB, because we manufacture in mainland China, but most of our overseas sales are currently denominated in USD. This creates exchange-rate risk we've had to account for in our prices, so now we’ve removed that risk it puts us in a stronger competitive position that will benefit our customer in turn."

Rakesh Bhatia, HSBC's Global Head of Trade and Receivables Finance, said, "As China's economy expands and the internationalisation of the RMB gathers pace, I believe we'll see many more companies following Milagros' lead. HSBC has built RMB trade capabilities in 59 markets, because the customer demand is already there. With the RMB predicted to become a top three global trade currency within the next five years, we expect that demand to grow exponentially."

Please click here to read the full press release by HSBC.

In additional news, HSBC recently launched a new RMB savings insurance plan, which is an alternative wealth management product designed to help customers diversify their investment portfolio.

HSBC's WealthSave (Renminbi) Insurance Plan provides policyholders with competitive guaranteed premium return of up to 113% and helps them to capture potential RMB appreciation.

Diana Cesar, HSBC's Head of Retail Banking and Wealth Management for Hong Kong, said, "WealthSave (Renminbi) is a competitive savings insurance plan designed for customers who are looking for an all-in-one wealth management solution that combines savings, protection, and potentially higher returns in the medium to long-term compared to pure RMB savings. As the leading life insurance services provider in Hong Kong, HSBC is committed to introducing simple and practical products and services that address customers' needs."

Ms. Cesar added, "The market sentiment for RMB products remains favourable. In view of the growing demand for RMB products among people in Hong Kong, we are launching WealthSave (Renminbi) Insurance Plan to not only provide customers with exposure to potential currency appreciation, but also help them to diversify their portfolios from a total wealth management perspective."

Please click here to read the full press release by HSBC.

HSBC also recently announced that it successfully executed the first RMB-denominated cross-border trade transaction in India for a major pharmaceuticals company. HSBC India has now joined the rapidly growing list of HSBC entities that have concluded their first trade settlement in RMB.

Sandeep Uppal, Managing Director and Head of Commercial Banking, HSBC India, said, "India-China is a very important and active trade corridor, and we see the first RMB settlement as an important milestone in the fast-growing bilateral trade between the two countries. We have a clear focus on emerging markets, and this deal showcases HSBC's capabilities in facilitating international business in the region. We are geared to provide our customers with financial solutions that can help them benefit from the vibrant and growing trade in this corridor."

Surath Sengupta, Head of Global Trade and Receivables Finance, HSBC India, said, "South-South connections are set to revolutionise the global economy in the same way that trade between the developed nations exploded in the 1950s and 1960s, and we expect the 21st century to see significant trade growth between these two emerging nations. The scale of opportunity between India and China is huge, and HSBC is well-positioned to support trade between both the countries."

Please click here to read the full press release by HSBC.

In mid-July, HSBC opened a new office in Guangzhou's central business district in southern China. HSBC Software Development (Guangdong) Ltd. (HSDC) and HSBC Electronic Data Processing (Guangdong) Ltd. (HDPG) will occupy four floors of office tower one and all of office tower two, with capacity for more than 6,400 people. The increase in capacity will enable HSBC's continued business expansion in the region.

HSBC's new office was pre-approved for Leadership in Energy and Environmental Design (LEED) Gold pre-certified ratings from the U.S. Green Building Council (USGBC), an international standard for environmentally-friendly construction.

Sean O’Sullivan, HSBC's Group Chief Operating Officer, said, "Starting with a Group Service Centre (GSC) in 1996, HSBC currently employs around 10,000 staff in HSDC and three GSCs under HDPG in Guangdong, providing seamless services to the Bank's customers across the globe. The launch of the new office is another milestone of the Group's presence in the province."

Helen Wong, HSBC China Chief Executive Officer, said, "This investment demonstrates once again the Group's commitment to the China market. More importantly, it will further enhance our capability to serve customers and join them up to HSBC's global network as the Bank continues to expand its network and grow business in China."

Please click here to read the full press release by HSBC.