HSBC China to be among the first markets for direct trading of RMB and Yen

HSBC Bank (China) Company Limited (HSBC China) has today received approval from China's Central Bank to be among the first batch of market makers for the direct trading of the renminbi (RMB) and Japanese yen in China's interbank foreign exchange (FX) market.

HSBC China will participate in the market upon the launch of RMB-yen trading on 1 June 2012, helping to provide liquidity to the market. Direct currency trading is expected to strengthen the trade and investment ties between China and Japan. David Liao, Managing Director and Head of Global Markets, HSBC China, said: "We are honoured to be appointed as a market maker for the new direct currency trading. Direct RMB-yen trading is a vital move towards building a representative and liquid onshore benchmark for major non-US dollar crosses. It is also a significant step forward in the internationalisation of China's currency, supporting the growing demand for RMB payment and settlement globally.

"As one of the most active participants in China's interbank FX market and a leading international bank supporting RMB internationalisation developments, we will fully leverage our global FX trading expertise to provide liquidity to the market for RMB-yen trades."

In addition to the above development, HSBC China was among the first batch of banks appointed as market makers in China's interbank FX market in 2005. It was appointed as a market maker for CNY (onshore RMB) trading against the Malaysian currency in August 2010, the only foreign bank among the first three banks approved for this currency pair trading.

Globally, HSBC has championed the internationalisation of China's currency.

In Japan, it was one of the first banks to commence RMB services and has been helping businesses hedge against market risks by providing them with a wide range of offshore RMB (CNH) or NDFbased (non-deliverable forwards) FX and interest rate products.