HSBC Singapore RMB solutionsThe growing use of China’s currency worldwide is creating new trade, capital investment and fi nancing opportunities for companies doing business with or in the Mainland. Benefi ts of using renminbi (RMB) include improving working capital, simplifying processes and mitigating payment risks.

As the leading international bank for RMB business, HSBC is well placed to support you.

Conducting RMB business in Singapore

HSBC Singapore RMB product suiteOffshore RMB Products

FX • Spot FX• Deliverable FX Forward, Options and Swaps• Non Deliverable Forward and Options

Rates • Non Deliverable Interest Rate Swaps (7d Repo / 3m Shanghai Interbank Offer Rate)• Deliverable Interest Rate Swaps and Interest Rate Swaptions (CNH Hong Kong Interbank Offer Rate) • Cross Currency Swaps

Borrowing / Financing • Trade fi nancing facilities and commercial loans• Issuance of offshore RMB bonds / Certifi cate of Deposits

Liquidity • RMB current accounts• RMB TMDs (1 week to 1 year tenors)

Investments • Fixed Deposits• Sovereign / Corporate Bonds • Structured Deposits / Notes

Get started todayTo find out more about how you can take advantage of RMB developments, please contact your Relationship Manager.

Visit our RMB resource centre at www.rmb.hsbc.com

Offshore RMB Clearing in Singapore• As part of Singapore’s enhanced financial services cooperation

under the China-Singapore Free Trade Agreement, the People’s Bank of China (PBOC) appointed the Industrial & Commercial Bank of China (ICBC) Singapore Branch as the RMB clearing bank for Singapore.

• Since 27th May 2013, banks participating in RMB clearing and settlement services provided by ICBC Singapore are able to access the payment systems and financial markets in China to conduct RMB payments and fi nancial market transactions.

• There are no restrictions on the fl ow of RMB funds in and out of Singapore. RMB funds held in Singapore will be fungible with that in countries outside China, provided there are no restrictions on the fl ow of RMB funds in these countries as well.

• Subject to their licensing conditions, banks in Singapore are able to open RMB accounts for all companies and individuals and can also provide RMB-denominated businesses including deposit-taking, currency exchange, remittance, trade settlement, fi nancing, cash management, foreign exchange trading (including derivatives trading) and wealth management. Banks can also assist companies in the conduct of RMB-denominated capital market activities in Singapore.

Deposit-taking • All companies and financial institutions (either in Singapore or

overseas) are able to open RMB accounts with banks in Singapore, subject to prevailing regulations and the banks’ internal policies and procedures.

Currency Conversion• There is currently no restriction on RMB currency exchange for

corporations in Singapore. Companies are able to buy and sell RMB with any bank in Singapore based on rates quoted by the bank.

Remittance• There are no restrictions on the transfer of RMB funds in and out of

accounts held in Singapore.

• Transactions not involving cross-border flow of RMB funds with China will not be subjected to additional regulatory requirements from PBOC or other relevant regulatory bodies in China.

Loans & Financing• There is no restriction on the extension of RMB loans by a bank to

a company or an individual customer.

• A bank’s customer is allowed to take up a loan intended for use in China. However, the customer will need to ensure that the required approvals from the relevant Chinese government authorities are obtained for the transfer of the borrowed funds into China.

Debt Capital Market & Investments• There are no restrictions on the issuance of RMB-denominated

bond instruments in Singapore. Issuers will need to comply with the prevailing regulations regarding bond issuances in Singapore.

• An issuer will need to seek approval from the relevant Chinese authorities in order to remit the proceeds from an RMB bond issuance into China. The issuer will also be able to convert the RMB proceeds into another currency.

• Singapore-based companies (including foreign companies operating as branch or subsidiary in Singapore) will be able to undertake RMB foreign direct investment into China, with expedited approval at the local provincial level for investments below RMB 300 million.

RMB Trade FinancingBenefits to Singapore importers and exporters when buying/selling in RMB include:

• Potential discounts from China exporters

• Achieving greater price transparency through comparing RMB and USD quotes from China suppliers

• Increasing sales by packaging competitive solutions with a bank to:– accept potentially longer trade terms under Letter of Credit (LC)

from a Chinese buyer

– achieve lower LC discounting cost in Singapore compared to Chinese companies’ onshore borrowing

– hedging FX exposure

HSBC Singapore has one of the largest Trade & Receivables Finance advisory specialist teams and the largest trade operations in Singapore amongst international banks. Backed by our global network and access to local expertise, HSBC is well-placed as a global leader for your RMB trade transactions.