HSBC welcomes measures to support the renminbi market in Australia

Published 

HSBC welcomes two significant announcements today strengthening China-Australia financial links – a Memorandum of Understanding to establish official renminbi (RMB) clearing arrangements in Australia and an RMB Qualified Foreign Institutional Investor (RQFII) quota of RMB 50 billion.

Tony Cripps, Chief Executive of HSBC in Australia said: “Australia’s economic future is undeniably linked to China. Becoming an offshore renminbi clearing centre and receiving an RQFII quota is an amplifier for further cross-border linkages with China.”

“China’s programme of RMB internationalisation is part of its broader re-integration with the global financial system. Rarely in history has a currency achieved a global profile as quickly as renminbi. 

“Over the past few years, China’s drive to internationalise its currency has given rise to vibrant new financial markets, changed the face of international trade and opened up new possibilities for companies and investors in Australia and around the world,” Cripps said.

While Australian companies can already access RMB clearing and settlement via Hong Kong, a regional RMB clearing centre onshore in Sydney will support growing demand for RMB-denominated trade settlement and, increasingly, investment. It will do this by creating the

infrastructure needed to facilitate high volumes of RMB-denominated business onshore and deepen our RMB liquidity pool in Australia.

“For Australian companies this means more efficient and rapid settlement of RMB-payments and access to more Chinese customers who prefer to deal in the Chinese currency. Australian businesses should be RMB-ready to capitalise on these financial and relationship advantages,” Cripps said.

The allocation of an RQFII quota gives Australian institutional investors the chance to buy directly into opportunities in China’s previously restricted capital markets. Cripps continued: “Ever since Chinese authorities began accelerating the opening up of the Chinese

domestic capital markets in 2011, global institutional investors have been itching to invest in RMB assets that have direct exposure to China. Australia’s RQFII quota means our institutional investors can now gain direct access to China.”

These announcements add to a growing list of developments supporting Australia-China connectivity, including a bilateral currency swap agreement, an AUD/CNY direct trading deal, and most recently a milestone Free Trade Agreement with China. Cripps said: “More so than ever, today’s announcements are paramount for Australia’s future China strategy.”

Cripps concluded: “HSBC has been at the forefront of the RMB growth story in Australia. We have been supporting our customers’ participation in RMB business by connecting clients to our network in China and by demystifying the perceived complexities of doing business in China. And we’re seeing this pay off with many of our clients, big and small, reaping the financial and relationship benefits.”

“We are delighted by today’s announcements and look forward to further supporting our clients and Australia’s connectivity with China,” he said.

Most recent episodes

Advantage Treasury

Eleanor Hill is joined in the virtual TreasuryCast studio by Nicolas Cailly and Philippe Penichou (Societe Generale) to look at treasury trend predictions for the remainder of 2022, with a particular focus on virtual accounts. In this deep dive into current and future treasury priorities, our guests consider...

24:22

40th Annual New York Cash Exchange: What Can Treasurers Expect?

Ahead of the 40th annual New York Cash Exchange, two of TMANY’s distinguished board members, David Miller and Timothy T. Hesler, CTP, provide TMI CEO, Robin Page, with a quickfire rundown of what attendees can expect from this year’s conference. Our guests share their aspirations for the event,...

09:58

Expectation-Beating Inflation Prints Ratchet Up Pressure on Monetary Policy

Welcome to the third edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 9th May...

04:48

Making the Sustainable Transition: A Roadmap to ESG in Treasury

Over the last 18 months, Societe Generale has experienced a steady increase in requests from their corporate clients to integrate ESG features in treasury management.  Louis-David Rouyer, Philippe Pougeard, and Emmanuelle Petelle (Societe Generale) provide TMI’s Eleanor Hill with a whistlestop run...

22:24

Lift Off for Fed Rate Rises

Welcome to the latest edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 5th of...

04:58

Treasury in 2022 and Beyond

Industry experts Bob Stark (Kyriba) and Sebastian di Paola (PwC) join TMI’s Editor, Eleanor Hill, to explore the very latest treasury trends – and to discuss how smart treasurers can get ahead of the game by ...

43:21

How BearingPoint Harnessed Data-Driven Forecasting with CashAnalytics and SAP

Listen back to our recent forecasting masterclass, where Group Treasurer Eveline Stam, and Conor Deegan (CashAnalytics) provided TMI’s Eleanor Hill with a comprehensive overview of how consultancy firm BearingPoint achieved company-wide cash forecasting nirvana by combining specialist solutions from...

37:14

The 3 T’s of The Future: Tech, Treasury, and Transformation

Over the past two years, an increasingly dynamic environment has not only accelerated technology development – from quantum computing to blockchain technology, and even the metaverse – but also technology adoption, bridging colleagues and breaking down silos in a remote work world. In this podcast,...

44:02

Monetary Policy Continues to Drive Markets as Ukraine Invasion Weighs on March Meetings

Welcome to the second edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 3rd of...

05:25

Tax Spotlight: How the OECD’s Two-Pillar Solution Impacts Treasury

Aaron Lee and Joseph Lee (DBS Bank) join TMI’s Eleanor Hill to discuss how the OECD’s Two-Pillar Solution aims to address the tax challenges arising from the digitalisation of the economy. Ahead of the 2023 implementation date multinational corporates will have much to consider around these reforms....

24:00