The renminbi. Are you ready for what happens next?
We're a pioneer in the renminbi (RMB) business and continue to lead as the market develops. Our long history in China and Hong Kong, on-the-ground presence and intimate understanding of the Chinese currency means that we are in an unique position to help develop tailor-made solutions and strategies to cater to your specific needs.
We have the expertise and relationships you need to navigate this evolving landscape because we are:
- A key driver of market development
- A leading advisor for corporates and institutions
- On the forefront of regulatory updates
Leverage our leading market position in the RMB business and our deep understanding of your needs. Partner with us to gain access to a range of RMB capabilities that will address your RMB settlement needs:
- Opening and managing of RMB accounts for clients across Asia, Africa, Europe and the Middle East
- Settlement of cross-border trade transactions in RMB
- RMB cash management services including clearing, payments, account management and liquidity management
For more RMB information, please contact your Relationship Manager.
- Evolving RMB
The rules for doing business in China are changing rapidly.
The cross-border scheme for RMB trade settlement has evolved since 2009. In June 2012, the scheme was expanded to allow all companies in China with an import-and-export license to settle their foreign trade in RMB. Previously, only selected businesses were allowed to do this. Today, China continues to advance the gradual internationalisation of its currency.
Various stages of RMB internationalisation:Local CirculationRMB - the beginning
Trade SettlementRelaxation of RMB cross-border trade scope
- July 2009: Pilot RMB settlement scheme with Hong Kong, Macau and ASEAN countries
- June 2010: The scheme covered 20 provinces and applicable to all countries
Store of wealthInvestment options are expanding
- August 2011: Expansion of cross-border RMB trade settlement from 20 provinces to the whole of mainland China
- June 2012: All enterprises with an import-and-export license will be allowed to settle their foreign trade in RMB
Reserve CurrencyRMB as an asset class for institutional and private wealth investors and sovereign wealth investment
- Investment options are expanding
October 2011: Expansion of the Dim Sum Bond market by allowing domestic mainland corporate to participate
- December 2011: Widening the RMB repatriation channel by RMB FDI and RQFII to expand RMB deployment channels back onshore
- What's next? RMB paving way to full convertibility?
- For corporates
As a buyer from the China market, having a RMB account allows you to
- Increase pricing transparency: Goods can be priced and settled in RMB without any potential mark up resulting from foreign exchange
- Improve supplier relationships: The elimination of foreign exchange documentation means that Days Payable Outstanding for the suppliers is shortened. Suppliers can receive faster tax rebates from the authorities, thereby reducing costs in the supply chain
- Widen supplier base: RMB settlement can be used to access a wider supplier base who might have limited access to foreign currency
As a seller to the China market, having a RMB account allows you to:
- Reduce risk: Holding a RMB cash position is a natural hedge for two-way import and export flows with China
- Increase control: Manage timing of foreign exchange transactions
- Improve turnaround time: Shorten settlement cycle and Days Sales Outstanding by eliminating foreign currency settlement
- Widen client base: RMB settlement can be used to access a wider client base who might have limited access to foreign currency
- Enjoy competitive advantage: Not all overseas firms have the ability to receive payments in RMB and you can potentially enjoy higher interest yield on RMB
- For FIs
For financial institutions
Partner with us to gain access to RMB capabilities that can satisfy growing demand from your clients:
- Settle trade transactions in RMB for your clients and offer RMB cash management services including payment clearing and account and liquidity management
- Take advantage of the revenue opportunity offered by RMB cross-border settlement without the complexities
- Execute and support RMB cross-border trade through a single RMB account with Standard Chartered Bank China
- Capitalise on growing demand for RMB and re-position to offset future declines in USD clearing
- Receive and hold RMB for SHIBOR based interest rates which give you potentially higher yields
- Improve visibility and control over RMB accounts and transactions through our online platform Straight2Bank
- Why us?
A proven market leader:
- First foreign bank to obtain the Settlement & Agency Bank license in China
- First two-way (payments and collections) RMB cross-border trade settlement between Hong Kong and China
- First RMB cross-border trade between Korea and China
- First in RMB clearing among foreign banks in China on trade settlement
- First RMB bond in Hong Kong for a foreign multinational company
- First RMB structured investment product in Hong Kong
- First RMB cross-border trade between UAE and China
- First RMB Bid Bond in Malaysia - first RMB guarantee in the region
- First RMB Capital Injection transaction from Singapore
- First RMB trading account in Africa opened for a South African metals trader
Q: How can your company benefit from RMB Trade Settlement?
- Protect and grow your existing business with trading partners in mainland China
- Negotiate better contract terms with payments in RMB that can potentially translate into extended Days Payable Outstanding or shorter Days Sales Outstanding
- Use an RMB cash position as a natural hedge for two-way import and export flows with China
- Centralise and proactively manage RMB exchange risk
- Improve customer relationships through more transparent pricing for RMB denominated goods from mainland suppliers
Q: Which companies are eligible for RMB Trade Settlement with China?
A: Cross-border RMB transactions are available for goods and service transactions across the whole of mainland China.
In June 2012, the RMB trade settlement scheme allows all Chinese enterprises with import and export license to conduct foreign trade in RMB given that the surveillance list has been established.
Companies on the surveillance list can conduct cross-border trade in RMB but their export proceeds cannot be retained overseas, and their transactions will be closely monitored by the settlement banks in mainland China.
Q: What RMB trade settlement services are available from Standard Chartered outside mainland China*?
A: Services outside of mainland China:
- RMB account services
- Two-way exchange services between RMB accounts and foreign currency accounts
- Remittance services - inward and outward
- Trade settlement and finance services - Letter of Credit opening and advising, collection and trade finance
- Liquidity management solutions
Q: Can we open an RMB account with Standard Chartered?
A: Yes. An RMB account may be opened with us for the purpose of trade settlement in most countries. Please contact your Relationship Manager/Transaction Banking sales consultant for details.
* All RMB trade settlement services offered are subject to relevant guidelines and regulations from authorities.