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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news