BEIJING, July 5 (Xinhua) -- The Bank of China (BOC), China's largest foreign exchange bank, will transact the first cross-border yuan trade settlement deal Monday, a source with the bank said Sunday night.
The BOC Shanghai branch would receive the first cross-border yuan trade settlement deal from the BOC (Hong Kong) Monday, the unidentified source said.
The payee would be Shanghai Electric International Economic and Trading Co., Ltd. under Shanghai Electric Group Co., Ltd. and the remitter would be the company's business partner in Hong Kong.
China last week issued detailed measures to regulate the pilot program for cross-border trade settled in yuan. The rules specified how to make transactions using Renminbi (RMB) to settle trade with Hong Kong and Macao and regional trade partners.
"The service has drawn much attention and many overseas enterprises had been asking us about it months ago. Why? Because cross-border yuan trade settlement could help enterprises avoid exchange rates risks, lock up financial costs and reckon enterprise anticipated profits," the source said.
"In comparison to convertible currency settlement, it could streamline links and reduce trade cost. It could help enterprises without foreign exchange revenues cut losses from converting foreign exchanges. It could reduce derivative fees in selecting RMB financial products," said the source.
The BOC Shanghai branch has reached tentative agreements with 11 overseas agent banks on yuan trade settlement deals. Now the agent banks in tentative agreements with the BOC mostly are large banks in Asia and they anticipate remarkable demand on yuan settlement, according to the sources.
"We are in talks with banks in the United States and Europe and get very positive feedbacks. Despite some obstacles in cross-border yuan settlement, the trend is good," the source said.
BOCHK to conduct first cross-border RMB trade settlement transaction
HONG KONG, July 5 (Xinhua) -- Bank of China (Hong Kong) Limited, or BOCHK, will conduct the first cross-border Renminbi trade settlement transaction on Monday, marking the launch of a Renminbi trade settlement pilot scheme, the bank said on Sunday.
This is "an important milestone" of the use of Renminbi outside the Chinese mainland "in an orderly manner," the bank said. Full story
BOCHK to launch RMB trade clearing services in HK
HONG KONG, July 4 (Xinhua) -- The Bank of China (Hong Kong) Limited (BOCHK), the sole Renminbi (RMB) clearing bank in Hong Kong, announced here Saturday that it will launch RMB clearing services for trade settlement starting from Monday.
BOCHK said it had singed a clearing agreement with the People's Bank of China in relation to RMB business, and will invite banks and other financial institutions participating in trade settlement to sign a new clearing and settlement agreement. Full story
Bank of China signs yuan trade settlement deal with HSBC, BOC (HongKong)
BEIJING, July 4 (Xinhua) -- Bank of China (BOC), China's largest foreign exchange bank, announced Saturday it has signed a yuan trade settlement agreement with BOC (Hong Kong) and HSBC in Hong Kong.
The BOC is the first mainland bank to reach such agreements following rules published this week to regulate the pilot program for cross-border trade settled in yuan. Full story
RMB trade settlement pilot scheme new milestone for HK: HKMA chief
HONG KONG, July 2 (Xinhua) -- The pilot scheme for cross-border trade to be settled in renminbi (RMB) between certain enterprises in five mainland cities and their trading counterparts outside the mainland marked another milestone for the renminbi business in Hong Kong, Hong Kong Monetary Authority Chief Executive Joseph Yam said Thursday.
"This is a development of strategic importance," Yam wrote in his online weekly column, referring to the joint release on Thursday of a regulation by the Chinese mainland financial authorities to pave the way for the yuan settlement pilot scheme. Full story
China issues detailed measures regulating cross-border trade settled in yuan
BEIJING, July 2 (Xinhua) -- China has issued detailed measures to regulate the pilot program for cross-border trade settled in yuan, according to a document released Thursday by the central bank.
The document posted on website of People's Bank of China specified how to make transactions using the yuan to settle trade with Hong Kong, Macau and regional trade partners. Full story
