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

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news