-- Hub expected to boost bilateral trade flows, encourage expansion and diversification of Canadian capital markets --
VANCOUVER, Nov. 8, 2014 /CNW/ - As Canada's leading international bank, HSBC Bank Canada applauds the Bank of Canada and the People's Bank of China on the signing of a Memorandum of Understanding (MoU) agreement, establishing Canada as the first renminbi (RMB) trading hub in the Americas. Canada will be the eighth RMB trading hub globally, alongside Hong Kong, London, Singapore, Paris, Frankfurt, Seoul and Doha.
China is the largest trading economy in the world, and Canada's second-largest trading partner behind the United States.
Paulo Maia, President and Chief Executive Officer, HSBC Bank Canada: "The internationalization of the RMB is one of the most significant financial events of the 21st century, and Canadian businesses and the economy as a whole will benefit from Canada's position as the first RMB trade and investment hub in the Americas.
"In some respects this is business-as-usual for us, as HSBC has been enabling global trade flows between Asia and the rest of the world for 150 years. It's this legacy of global banking that allows us – and our Canadian clients – access to unique insights and understanding of transacting in RMB, and the broader rules and regulations of doing business with China."
HSBC has established RMB trade capabilities in more than 50 markets globally, including Canada, and was the first international bank to settle RMB trade on all six continents. HSBC offers a wide range of market-leading RMB products and services, including payments and cash management, trade and receivables finance, and global markets solutions.
HSBC also led the first-ever offshore RMB-denominated bond and initial public offering, and is the number one underwriter of Dim Sum bonds in 2014. British Columbia (BC) became the first foreign regional government to issue a Dim Sum bond last November, with HSBC acting as sole book runner.
China & the Internationalization of the RMB:
- The RMB overtook the EUR to become the second-most used currency in global trade finance after the USD in December 2013.1
- China is the world's 2nd largest destination for Foreign Direct Investments (FDI) in 2013. Overseas Direct Investments (ODI) reached USD115bn (ranked 3rd globally excluding tax havens) in 2012.2
Canada / China Trade & Investment:
- China is Canada's 2nd largest trading partner behind the US, and trade between the two countries increased 57% between 2007 and 2012.3
- In 2013, bilateral merchandise trade between Canada and China reached $73.2bn (inc. $20.5bn in Canadian exports or 7.7% of Canada's total merchandise exports)4
- HSBC forecast: Canada will increase its exports to China by 11% annually over the next 3 years, and imports from China will grow at an annualized rate of 8% over the same period.5
Additional information and resources:
- HSBC RMB Resource Centre: Global HSBC website site designed to provide clients with useful content and information on the RMB, including step-by-step how-to guides. www.rmb.hsbc.com/
- HSBC Global Connections: Comprehensive web-based resource for businesses looking to grow internationally. Includes news on international business, free tools to help identify global opportunities, and research insights from around world. www.globalconnections.hsbc.com
About HSBC Bank Canada
HSBC Bank Canada, a subsidiary of HSBC Holdings plc, is the leading international bank in Canada. The HSBC Group serves customers worldwide from over 6,200 offices in 74 countries and territories in Europe, Asia, North and Latin America, and the Middle East and North Africa. With assets of USD2,729bn at 30 September 2014, HSBC is one of the world's largest banking and financial services organizations.
1 HSBC Global Research – Rise of the Redback III http://www.rmb.hsbc.com
2 China Going Global Investment Index, Economist Intelligence Unit
3 HSBC Global Trade Forecast – September 2014 www.globalconnections.hsbc.com/ca
4 Canadian PMO News Release -- http://pm.gc.ca/eng/news/2014/10/31/pm-visit-china
5 HSBC Global Trade Forecast – September 2014 www.globalconnections.hsbc.com/ca
Image with caption: "HSBC Bank Canada (CNW Group/HSBC Bank Canada)". Image available at: http://photos.newswire.ca/images/download/20141108_C5650_PHOTO_EN_7746.jpg
SOURCE: HSBC Bank Canada
Renseignements: Media enquiries: Aurora Bonin, Senior Media Relations Manager, HSBC Bank Canada, 604- 641-1905; Fabrice de Dongo, Senior Media Relations Manager, HSBC Bank Canada, 416-868-8282