HSBC Launches RMB Two-Way Cross-Border Sweeping for Corporates in Shanghai Free Trade Zone

Published 

HSBC Bank (China) Company Limited (“HSBC China”) has launched renminbi (“RMB”) two-way cross-border sweeping for corporates in the China (Shanghai) Pilot Free Trade Zone (“Shanghai FTZ”) by delivering this financial solution for Dover Corporation (“Dover”) via its subsidiary in the zone.

This is the first time that HSBC China provides this innovative service for corporates in the Shanghai FTZ, demonstrating the Bank’s efforts supporting the real economy after China announced a series of guidelines to speed up financial reforms in the pilot zone. Dover is one of the first foreign-invested enterprises to transact such business in the zone.

Dover is a world-leading manufacturer of diversified industrial products. The RMB two-way cross-border sweeping helps the company to deploy funds more efficiently between its overseas and domestic affiliates, thereby raising its capital efficiency and elevating RMB’s position as one of its primary settlement currencies.

RMB two-way cross-border sweeping enables multinational corporations to deploy funds on a pre-set automated basis between their onshore and offshore entities by linking their Mainland and overseas cash pools. It also brings greater transparency to their operations and enhances their ability to optimise their working capital management. With these benefits, this RMB-based solution will become an effective cash management tool for Dover and other companies with regional treasury functions.

Helen Wong, Deputy Chairman, President and Chief Executive Officer of HSBC China, said: “HSBC is actively exploring and developing new financial solutions for customers in the China (Shanghai) Pilot Free Trade Zone in accordance with policy guidance. As the zone’s financial liberalisation continues, companies in the Shanghai FTZ will have wider options in financial solutions, such as cash management, funding and settlement, and a greater capacity to manage financial risk.

“HSBC is ideally placed to serve customers in the Shanghai FTZ through our global network, cross-border connectivity and international financial expertise. We continue to explore innovative financial solutions under the relevant policies to support our customers’ business growth and the development of the zone.”

Michael Zhang, President of Dover Asia, said: “RMB two-way cross-border sweeping means a great deal to Dover Corporation, not only enhancing the efficiency of Dover’s regional cash management, but also significantly improving the company’s Asia operations. It will better support the business expansion of our subsidiaries while also speeding up the process of RMB internationalisation within our group of companies.”

In December 2013 China unveiled a series of financial policy guidelines under which corporates in the Shanghai FTZ can conduct intra-group RMB two-way cross-border sweeping for centralised settlement between associated onshore and offshore entities.

HSBC has been preparing for new business opportunities in the Shanghai FTZ since the pilot zone was established and continues to drive product and service innovations in areas like cash management to support the growth needs of its corporate clients in the zone. As the largest foreign bank in mainland China, HSBC China continues to stand at the forefront of the RMB cross-border business and other financial market innovations.

Most recent episodes

£15 Billion Stimulus Pumped into UK Economy to Ward Off Recession Fears

Welcome to the latest edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 7th June...

04:44

Advantage Treasury

Eleanor Hill is joined in the virtual TreasuryCast studio by Nicolas Cailly and Philippe Penichou (Societe Generale) to look at treasury trend predictions for the remainder of 2022, with a particular focus on virtual accounts. In this deep dive into current and future treasury priorities, our guests...

24:22

40th Annual New York Cash Exchange: What Can Treasurers Expect?

Ahead of the 40th annual New York Cash Exchange, two of TMANY's distinguished board members, David Miller and Timothy T. Hesler, CTP, provide TMI CEO, Robin Page, with a quickfire rundown of what attendees can expect from this year’s conference. Our guests share their aspirations for the event, explain...

09:58

Expectation-Beating Inflation Prints Ratchet Up Pressure on Monetary Policy

Welcome to the third edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 9th May...

04:48

Making the Sustainable Transition: A Roadmap to ESG in Treasury

Over the last 18 months, Societe Generale has experienced a steady increase in requests from their corporate clients to integrate ESG features in treasury management.  Louis-David Rouyer, Philippe Pougeard, and Emmanuelle Petelle (Societe Generale) provide TMI's Eleanor Hill with a whistlestop run...

22:24

Lift Off for Fed Rate Rises

Welcome to the latest edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 5th of...

04:58

Treasury in 2022 and Beyond

Industry experts Bob Stark (Kyriba) and Sebastian di Paola (PwC) join TMI's Editor, Eleanor Hill, to explore the very latest treasury trends - and to discuss how smart treasurers can get ahead of th...

43:21

How BearingPoint Harnessed Data-Driven Forecasting with CashAnalytics and SAP

Listen back to our recent forecasting masterclass, where Group Treasurer Eveline Stam, and Conor Deegan (CashAnalytics) provided TMI's Eleanor Hill with a comprehensive overview of how consultancy firm BearingPoint achieved company-wide cash forecasting nirvana by combining specialist solutions from...

37:14

The 3 T’s of The Future: Tech, Treasury, and Transformation

Over the past two years, an increasingly dynamic environment has not only accelerated technology development – from quantum computing to blockchain technology, and even the metaverse – but also technology adoption, bridging colleagues and breaking down silos in a remote work world. In this podcast,...

44:02

Monetary Policy Continues to Drive Markets as Ukraine Invasion Weighs on March Meetings

Welcome to the second edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 3rd of...

05:25