Find out how HSBC's RMB cross-border services can help make your trade and investment with China easier and more efficient, with our simple guide below.
HSBC has been at the forefront of RMB internationalisation since the beginning, and can support your RMB business in over 50 countries and territories worldwide.
HSBC is continually expanding its RMB cross-border service offering by leveraging on regulatory and market developments. Please refer to the following resources or contact your relationship manager for further information.
No. RMB trade settlement services can only be provided by qualified banks. HSBC China was one of the first foreign banks approved by the People's Bank of China (PBOC) to provide RMB trade settlement services. The PBOC recently extended the pilot to all provinces, municipal cities and autonomous regions. HSBC China can provide RMB trade settlement services in all branches.
All companies in Mainland China are eligible to settle trade in RMB for the import and export of goods, import and export of services, other regularly performed trading, and offshore direct investments as permitted by relevant authorities.
Yes. Companies may conduct RMB trade settlements with settlement banks in other cities. For example, a corporate registered in Hangzhou can come to Shanghai to open an account and conduct RMB cross-border settlement business.
The chart below shows how to settle payment in RMB for an export from Mainland China to a company overseas:
The PBOC's Regulations for Implementation details of Administrative Rules on the Pilot Programme of RMB Settlement can be found here.
This is subject to local regulations of the supplier's country or territory. You would have to ask your suppliers to check with their local account holding banks in advance. Subject to the PBOC's approval, overseas enterprises can open a RMB Non-Resident Account with an onshore bank to receive RMB proceeds and make RMB payments under cross-border trade settlement (see question 12 below).
The PBOC has extended the coverage of the pilot scheme worldwide, subject to any local regulations / restrictions. You will need to confirm with your trade counterparty's account holding bank on their RMB clearing capability. Currently HSBC offers RMB services in over 50 countries and territories.
For cross-border RMB transactions, the overseas banks can open a RMB interbank account with a Chinese agent bank such as HSBC China or an eligible RMB clearing bank in Hong Kong or Macau to settle funds.
RMB accounts opened with onshore banks for offshore companies must be for RMB cross-border settlement purposes; offshore companies must complete an account opening application form and submit it, along with other required documents to the bank. The bank will then submit these documents to the local PBOC for approval. The required documentation varies within Mainland China according to local rules, but the certificate of business incorporation/registration of the offshore company is required in all regions.
The product range for RMB Trade Services, Receivable Finance and Telegraphic Transfers (TTs) is the same as for foreign currency products. The prevailing Corporate Tariffs will apply.
For our latest Corporate Tariffs, please click here.
Common types of trade are allowed under the scheme, including Documentary Credits (DC), Documentary Collections (D/P and D/A) and open account trade.
Yes, UCP600 rules apply to these types of transactions.
No, CILE will not be charged for RMB cross-border trade transactions.
The RMB deposit rates at HSBC Hong Kong can be found here.
Provided HSBC China receives clear payment instructions and all documents required by the PBOC from the customer are provided before the cut-off time, the bank will process remittances on the same day. HSBC China currently offers same-day credit services for RMB cross-border settlement between HSBC China, HSBC Hong Kong and HSBC Macau if the payment instructions are received before 11:00am. Turnaround times may vary, subject to future announcement by the PBOC on revised RMB trade settlement arrangements.
For more details, please contact a relationship manager or visit any HSBC China branch.
Currently there are no restrictions on the maximum amount of each RMB denominated remittance or documentary credit, provided the amount corresponds to genuine trade transactions.
Currently there is no daily limit on RMB transfer, provided the amount corresponds to genuine trade transactions.
With RMB trade, the foreign exchange verification form is not required for export customs declarations and the SAFE verification process is not required for claiming export tax rebate. Mainland China-based companies should continue to report balance of payments transactions for statistical purposes. For RMB inward and outward payments, Mainland China-based companies are also required to complete 'Cross-Border Trade RMB Settlement Import Payment Explanation' and 'Cross-Border Trade RMB Settlement Export Payment Explanation' forms respectively.
An onshore company can hold RMB income generated from export overseas. However, it must first report such an arrangement with the local PBOC through their settlement bank. Secondly, the information in relation to export proceeds held overseas, such as amount, export customs declaration number, overseas bank account and the intention of how the retained proceeds will be used, should be provided to the settlement bank and further recorded on the PBOC system.
Chinese authorities have implemented a 'watch list' system for RMB goods export. Watch list enterprises may not deposit their RMB income in offshore bank accounts. Penalties for violations will be applied.
In case of deferred receipt of export proceeds or deferred payment of import proceeds exceeding 210 days, the company must report the deferred payment amount and the relevant export declaration reference number to the RMB Cross-Border Payment & Collection System through their settlement bank within five business days. An onshore company needs to select one settlement bank as their primary reporting bank so they can be reminded of their reporting obligations.
Fund transfers between offshore and onshore RMB accounts may be performed for cross-border goods trade, service trade, other regularly performed trade settlements, overseas direct investment, and other capital account transactions that are allowed to be settled in RMB. Generally speaking, for domestic customers, documents that can evidence the authenticity of a transaction (e.g. contract, invoice, etc) must be provided. For further details, please contact an HSBC China branch.
Yes, HSBC China can provide RMB cross-border trade settlement import and export DCs, collections and trade finance services at any of its branches.
For the operational differences from an onshore client's perspective, please find a summary as follows:
|-||Explanatory Letter for Exports Proceeds under RMB Cross-Border Trade Settlement|
|-||Explanatory Letter for Imports Payment under RMB Cross-Border Trade Settlement|
The client should offer invoice, contract and import/export declarations to follow the PBOC's rule. A declaration of Balance of Payment is still applicable.
All licensed overseas banks that have settlement agreements with the local RMB Clearing Bank or Agent Bank in Mainland China can participate in RMB cross-border trade settlement. Overseas banks can only process requests to purchase or sell RMB for genuine cross-border trade transactions made with a Mainland China enterprise within the previous 3 months.
All overseas companies which have import and export trading business and other RMB settlement needs with enterprises in Mainland China can, upon approval by the local regulators, open RMB commercial accounts in participating banks overseas to settle their trade in RMB. Please contact the participating banks for account opening procedures. The purchase and sale of RMB is available only if the concerned RMB is to be used to settle, or arises from, a cross-border trade transaction made with a Mainland China enterprise within the previous 3 months.
There are a range of advantages to using HSBC for RMB trade settlement:
Foreign Invested Enterprises (FIEs) in Mainland China may receive RMB-denominated FDI subject to MOFCOM approval.
The approval requirements for RMB FDI are as shown below. These rules apply to offshore enterprises, economic organizations and individuals:
|-||Investment projects over RMB 300 million|
|-||Industries such as financing guarantee, financing lease, small-amount lending or auction, etc|
|-||Investment holding companies of foreign investors|
|-||Industries under macro-economic control|
Foreign Invested Enterprises (FIEs) in Mainland China may receive RMB-denominated FDI.
Foreign Invested Enterprises (FIEs) can receive cross-border RMB shareholder loans but require prior registration of foreign debt to SAFE. Documentation requirements may vary slightly between different local SAFE offices, however the following are usually required:
PBOC approval is not required. The invested real estate enterprises, which obtain business approved by the authorities after June 1, 2007, shall not borrow foreign shareholders of RMB loans.
For more information, please contact HSBC's relationship manager:
HSBC Commercial Banking Hotline: 400 882 6688
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