Cross-border RMB Business Opportunities

What are the advantages of trade settlement in RMB for corporations?

As the market framework of offshore RMB develops and there is increasing use of offshore RMB, enterprises that take the lead in using RMB overseas can enjoy the benefits of RMB internationalisation at an early stage.

  1. Optimise Exchange Rate Risk Management and Reduce the Costs of Conversion and Transaction
    Multinational corporations that conduct trade settlement or direct domestic investment in RMB will reduce their exposure to currency mismatching due to the fluctuations of the RMB exchange rates. At the same time, they can hedge the RMB income and expenses and thus save on exchange costs. Foreign enterprises investing in China can choose cross-border RMB loans as an alternative method of financing. Enterprises can compare the exchange rates and interest rates of both onshore and offshore markets to select the best financing and settlement solutions.

  2. Develop New Markets and New Products
    China is one of the largest import and export markets in the world. Companies that adopt RMB settlement with trade partners in China will reduce their financial and operating costs in currency exchange, enhance competitiveness and bargaining power in cross-border trade business and access a wider network of potential new trading partners. They can also expand the business scope and develop emerging markets.

  3. Broaden Investment Channels
    Underpinned by the investment potential of RMB, enterprises can broaden the investment scope and increase the returns of their investment through diversified RMB investment products. They can also increase non-operating income, obtain more capital for business expansion, and create greater value for shareholders.