HSBC scores 1st bilateral RMB business loan
The China Post news staffTAIPEI, Taiwan -- HSBC recently announced completion of the first two-way cross-border renminbi lending for Kunshan President Enterprises Food Company under a new pilot program in Kunshan, becoming the first bank in mainland China to offer this type of transaction.
September 11, 2013, 12:11 am TWN
HSBC China has set up a master account for cross-border renminbi two-way lending for Kunshan President (昆山統一食品), a prominent Taiwan-invested company in Kunshan, and helped it obtain regulatory approval for an intra-group two-way lending quota totaling 1.49 billion (US$243.3 million) renminbi.
The first cross-border transaction has been completed, with 10 million renminbi transferred to this master account from its related overseas company.
The city of Kunshan, in Jiangsu Province, was approved by mainland Chinese regulators in August to launch a series of cross-border renminbi pilots via its "Kunshan Deepen Cross-Strait Industrial Cooperation Experimental Zones" (昆山深化兩岸產業合作試驗區) which includes renminbi cross-border intra-group two-way lending for Taiwanese corporations in the zone.
As part of the pilot zone for industry cooperation between mainland China and Taiwan, a range of pilot projects for cross-border renminbi services was approved in August.
These projects cover two-way renminbi 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 renminbi cash pools a feasible proposition.