News Release
9 July 2014
FIFTY-EIGHT PER CENT OF BUSINESSES IN HONG KONG USE RMB,
GLOBAL SURVEY SHOWS
***Businesses say RMB-ready gives competitive advantage in China trade***
In the global race to develop trade links with China, readiness to do business in renminbi
(RMB) could give some countries’ exporters a vital edge over their rivals, a new HSBC
Commercial Banking survey shows.
Whilst two-thirds of companies in mainland China and Hong Kong said foreign firms doing
business with China gain financial and relationship advantages from using RMB, awareness
of these potential benefits varies widely overseas, according to the 11-market poll.
Hong Kong respondents show a more receptive approach in RMB usage than their global
counterparts. Fifty-eight per cent of businesses use RMB in Hong Kong, up from 50% in 2013,
and this is far above the global average of 22%. Fifty-six per cent of current RMB users in
Hong Kong anticipate RMB cross-border growth over the next 12 months. Hong Kong
respondents cite foreign exchange cost minimisation as the primary motivator of future RMB
usage for cross-border transactions.
Half of respondents from Singapore, 44% from the US and 42% from the UK said they
believe RMB usage brings financial benefits, yet less than a third of their German and
Canadian peers share this view. More than half of UAE respondents said they see business
relationship benefits from RMB adoption, compared with 46% in France and 40% in Australia.
“This survey highlights a need for many companies to learn more about how the RMB can
help them connect to opportunities in China and get ahead of their rivals in this highly
competitive market,” said Simon Cooper, Chief Executive of HSBC Commercial Banking.
“Most Chinese businesses look favourably on overseas partners who are using RMB, both
because it shows commitment and because it eliminates foreign exchange risk from their
cost base. Although a currency can’t guarantee commercial success in China, it’s clear that
RMB should be a core component of every company’s business planning.”
With its trade in goods passing US$4 trillion, China overtook the US to become the world’s
largest trading nation in 2013. The IMF’s projections for nominal dollar GDP show that China
will add about US$850 billion to global demand this year; the equivalent of adding an
economy the size of Indonesia to global trade flows.
As China becomes ever more important to international businesses, the internationalisation
of the RMB is creating new opportunities in trade, investment, cash management and funding.
This information is issued by
The Hongkong and Shanghai Banking
Corporation Limited
Registered Office and Head Office:
1 Queen’s Road Central, Hong Kong
Web: www.hsbc.com.hk
Incorporated in the Hong Kong SAR with limited liability.
HSBC forecasts that a third of China’s trade will be settled in RMB by 2015 and that the
currency will be fully convertible by 2017. In 2013, there was a y-o-y increase of 46% in the
use of RMB for trade settlement in Hong Kong, and HSBC saw significantly stronger growth
than that.
Hisense Group (Hisense), one of China's largest electronics makers, demonstrates how it
benefits from RMB internationalisation. The company’s main focus is on the domestic market
with the majority of sales receivables in RMB, though its payables are all in USD. Leveraging
its Hong Kong subsidiary, Hisense can better manage its forex risk and enjoy lower financing
costs by taking advantage of a more flexible forex market and cheaper RMB offshore market
in Hong Kong. RMB settlement also allows for better trade terms for which Hisense can
improve its liquidity by setting a more tailor-made settlement term with its Hong Kong trading
arm. For its part, HSBC actively provides RMB cross border settlement solutions to assist
Hisense in adopting RMB internationalisation and managing its financial needs.
For its new survey, HSBC polled more than 1,300 decision-makers from mainland China,
Hong Kong, Singapore, Taiwan, Australia, Germany, France, Canada, the UK, the US and
the UAE who represent companies that conduct international business with or from China.
Among the other highlights of the survey:
 Outside the Greater China region (mainland China, Hong Kong and Taiwan),
businesses in France (26%) and Germany (23%) report the highest levels of RMB
usage.
 Of companies using the RMB to settle cross-border business today, 59% expect to
use it more over the next 12 months.
 Thirty-two per cent of companies that don’t use the RMB already expect to do so in
the future.
 Reasons for using the RMB include requests from trading partners, reducing forex
risk, convenience, winning new business and gaining better pricing.
 Those surveyed believe that the simplification of procedures (68%), further
liberalisation of the exchange rate (61%) and expansion of transaction types that
are RMB eligible (57%) would encourage them to further use RMB.
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Notes to editors:
About the RMB Survey
HSBC commissioned Neilsen to conduct a market survey of 1,304 international companies that currently do
business with mainland China or are a business in mainland China that imports/exports outside of the region.
The survey was in field between 3 April and 7 May 2014 and was undertaken to understand clients’ attitudes
towards using RMB, reasons of using / not using RMB for trade and investment activities, as well as other
insights they can offer about the RMB.
The research surveyed international businesses in Australia (n=100), China (n=200), Germany (n=100), Hong
Kong (n=200), Singapore (n=100), the UK (n=100), the USA (n=100), Canada (n=100), Taiwan (n=100), France
(n=100), and the UAE (n=100). Of the companies surveyed, approximately 50% had an annual sales turnover
between of US$3M-50M, 40% had a turnover of US$50M-500M and 10% had an annual sales turnover above
US$500M. (Copyright © 2014, The Nielsen Company)"
HSBC Commercial Banking
For nearly 150 years we have been where the growth is, connecting customers to opportunities. Today, HSBC
Commercial Banking serves businesses ranging from small enterprises to large multinationals in almost 60
developed and faster-growing markets around the world. Whether it is working capital, trade finance or
payments and cash management solutions, we provide the tools and expertise that businesses need to thrive.
With a network covering three quarters of global commerce, we make HSBC the world’s leading international
trade and business bank. For more information see www.hsbc.com/1/2/business-and-commercial.
The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group, which
serves around 54 million customers through four global businesses: Retail Banking and Wealth Management,
Commercial Banking, Global Banking and Markets, and Global Private Banking. The Group serves customers
worldwide from over 6,300 offices in over 75 countries and territories in Europe, Asia, North and Latin America,
and the Middle East and North Africa. With assets of US$2,758bn at 31 March 2014, HSBC is one of the world’s
largest banking and financial services organisations.
About Nielsen
Nielsen N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in
marketing and consumer information, television and other media measurement, online intelligence and mobile
measurement. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA
and Diemen, the Netherlands.
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