News
HSBC has completed* its first New Zealand cross-border Renminbi (RMB) transaction directly with China, following the extension of the RMB trade settlement pilot programme to all countries and regions in the world in June 2010.
The first landmark transaction was completed for Longbeach Holdings Limited; an apparel and fashion business which sources and produces apparel for a wide variety of retailers and direct marketers. Longbeach Holdings Limited also owns a number of different brands including the iconic Kiwi brand, Swanndri.
David Griffiths, CEO, at HSBC New Zealand, says: “We’ve been working towards completing our first RMB transaction for some time now and this represents a milestone for New Zealand in terms doing business with China.”
“Until the end of June only ASEAN countries were able to complete transactions directly with China, however, with the Chinese government recently announcing the rest of the world as eligible, HSBC New Zealand has taken quick advantage of this opportunity,” continues Mr Griffiths.
It will now become easier for New Zealand companies to make payments to their suppliers in Yuan, rather than having to convert to US dollars. It will also make it simpler for businesses to export and import goods to and from China,” continues Mr Griffiths.
Longbeach Holdings Ltd is pleased to be involved in this first RMB transaction and believes the ability to offer RMB as payment to their suppliers further demonstrates their pragmatic, savvy business approach. Craig McCallum Longbeach CEO says: “Having the
HSBC first New Zealand bank to complete RMB transaction
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ability to pay our business partners directly in RMB will assist us to maintain a competitive supply chain and keep us at the forefront of the industry.”
David Griffiths, comments: “This is an important step towards the RMB becoming an international currency in global trade. We believe the expansion of the pilot scheme will increase the volume of RMB denominated trade outside ASEAN and as a result we expect to see increasing demand for offshore RMB trade and payment solutions.”
“The great thing about this transaction is that we can replicate this with other New Zealand clients, which we look forward to doing,” concludes Mr Griffiths.
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Media enquiries to Dee Crooks, Group Communications Manager, on 09 368 8752 or 021 190 3616
Notes to Editors
* The cross border transaction was completed on Wednesday 11 August, 2010.
1. The HSBC Group in New Zealand
In New Zealand, HSBC offers an extensive range of financial services through a network of branches and offices. These services include personal and commercial financial services, payment and cash management, trade finance, treasury and financial markets, corporate banking, investment advisory and securities custody. The principal HSBC Group member in New Zealand is The Hongkong and Shanghai Banking Corporation Limited, incorporated in Hong Kong SAR, acting through its New Zealand branch.
2. The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding and a principal member of the HSBC Group which, with some 8,000 offices in 87 countries and territories and assets of US$2,418 billion at 30 June 2010, is one of the world’s largest banking and financial services organisations.