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


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news