HSBC Hong Kong has joined China's international payments system as a direct participant, giving the world's biggest player in trade finance a key role in Beijing's push to expand use of the renminbi, reports London's Financial Times
HSBC Hong Kong has joined China's international payments system as a direct participant, giving the world's biggest player in trade finance a key role in Beijing's push to expand use of the renminbi, reports London's Financial Times. The bank's Hong Kong unit is 'formally joining' China's Cross-Border Interbank Payment System, known as Cips, David Liao, co-chief executive of the bank's business in the Chinese territory, told a conference in Beijing, where he said the dominant role of the US dollar was being 'diluted.'
The move will make it easier for overseas companies to trade and invest using China's currency by making those payments faster and cheaper.
It underscores how HSBC's Hong Kong business is playing an important role in China's policy goals, at a time when the UK-headquartered bank is planning a sweeping overhaul that will redraw its operations along east-west lines and set up its UK and Hong Kong units as separate divisions.
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