There is huge potential in the usage of renminbi (RMB) in cross-border trade settlement among commercial banking customers in mainland China, with nearly eight out of 10 of survey respondents, (78%) which haven't yet started using RMB to settle cross-border trade, planning to use RMB in their future cross-border trade or adopt it conditionally.
The survey was conducted by HSBC China among its commercial banking customers in mainland China.
The survey on the motivation, challenges and outlook of using RMB to settle cross-border trade, found that 45% of the companies without experiences of RMB cross-border trade settlement have plans to adopt RMB in their future cross-border trade, a third (33%) will choose RMB depending on the pricing or services offered by banks, while only 22% have no such plans.
"This research clearly highlights the growing appetite among Chinese businesses to settle in RMB, which will directly impact European companies intending to and already operating in China," says John Casey, head of commercial banking at HSBC Continental Europe.
Casey notes that for European businesses pursuing international growth, RMB settlement is of growing importance and the research highlights the need for businesses, particularly those who have yet to trade in RMB, to talk to their bank or business advisor, particularly as this an area which, because of its rapid growth, is subject to frequent change.
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