Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


HSBC among First Market-Makers for Direct Trading of CNY/NZD

18 March 2014

HSBC among First Market-Makers for Direct Trading of CNY and NZD

HSBC has received approval from China’s central bank, the People’s Bank of China, to be one of the first market-makers for direct trading of the renminbi (CNY) and New Zealand dollar (NZD) in China’s onshore interbank foreign exchange market. The CNY/NZD currency conversion deal was formalised during an official visit to China this week by New Zealand Prime Minister John Key.

Helen Wong, Deputy Chairman, President and Chief Executive Officer of HSBC Bank (China) Company Limited, said: “HSBC is honoured to be appointed as a market-maker for CNY/NZD direct trading. CNY/NZD direct convertibility marks another milestone in the internationalisation of the renminbi. Coupled with China’s recent move to widen the daily trading band of the renminbi, it further demonstrates the country’s determination to speed up its financial market reform. Standing at the forefront of renminbi internationalisation, HSBC continues to leverage its global network and financial expertise to help drive forward this process.”

Noel McNamara, CEO of HSBC New Zealand, said: “In 2008, New Zealand became the first country from the Organisation for Economic Co-operation and Development (OECD) to sign a comprehensive Free Trade Agreement with China, which is now New Zealand’s largest trading partner. CNY/NZD direct convertibility is another symbolic and significant step in the China-New Zealand relationship, which will further facilitate trade and investment flows between the two countries by simplifying foreign exchange transactions and ultimately reducing costs.”

“New Zealand corporates trading with China should incorporate renminbi into their plans to maximise their market opportunities,” he added. “With its strong renminbi credentials, HSBC is ideally placed to help them take full advantage of the benefits of continuing renminbi internationalisation.”

HSBC has championed renminbi internationalisation since this historic process began. The Bank is one of the most active participants in China’s interbank foreign exchange market, where the CNY/NZD exchange rate has previously only been calculated from the USD/CNY and NZD/USD rates. This “cross pair” rate will now be supplemented by direct trading between the two currencies.

HSBC has renminbi trade capabilities in over 50 markets globally and has been active in providing renminbi solutions to customers in New Zealand. In June 2011, HSBC New Zealand was sole arranger of Fonterra’s inaugural offshore renminbi bond – the first so-called Dim Sum bond from an Australasian corporate – and recently followed this by managing Fonterra’s RMB 1.25 billion Dim Sum bond in January 2014.

HSBC is also active in facilitating Chinese foreign direct investment into New Zealand. In early March, the Bank advised Beijing Capital Group on its NZD 950 million acquisition of Transpacific New Zealand, the country’s biggest waste management firm.

Around 12% of China’s total foreign trade is currently settled in RMB and HSBC expects this to rise to around 30% by 2015. Bilateral trade between New Zealand and China amounted to around NZD 19 billion in the 12 months to January 20141.

The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group, which serves around 54 million customers through four global businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. The Group serves customers worldwide from over 6,300 offices in 75 countries and territories in Europe, Hong Kong, Rest of Asia-Pacific, North and Latin America, and the Middle East and North Africa. With assets of US$2,671bn at 31 December 2013, the HSBC Group is one of the world’s largest banking and financial services organisations.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Interest Rates: NZ Dollar Jumps After RBNZ Trims OCR

The New Zealand dollar jumped more than half a US cent after Reserve Bank governor Graeme Wheeler cut the official cash rate by a quarter-point and said the currency needs to be lower, while dropping a reference to criteria that justified intervention. More>>

ALSO:

Drones: New 'World-Class' Framework For UAVs

The rules, which come into effect on 1 August, recognise the changing environment and create a world-class framework that accommodates ongoing development while still ensuring the safety of the public, property and other airspace users. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news