ONE IN TEN SINGAPORE COMPANIES SETTLE TRADE IN RMB, WHILE HONG KONG, CHINA SEES MOMENTUM: HSBC More than half of Chinese businesses would offer discounts of up to 5% to settle in RMB An HSBC survey has revealed that 11% of companies in Singapore are now using RMB to settle cross-border business. This compares with half of the companies in Hong Kong (50%) and almost a third in mainland China (30%). The survey also found that 53% of Chinese businesses surveyed would offer discounts of up to 5% for transactions settled in RMB. Joseph Arena, HSBC’s Head of Global Trade and Receivables Finance, Singapore, said: “Businesses in Singapore are facing high labour and fixed costs, and finding that competitive advantage becomes crucial to their sustainability in this climate. There are very real monetary benefits for businesses using the RMB, and a 5% discount could represent significant cost savings for Singapore companies.” Outside Hong Kong and mainland China, businesses are also starting to take advantage of the RMB as a means to gain competitive advantage. Besides the 11% of businesses in Singapore, results show that 11% in the UK, 9% in Germany, 9% in the US and 7% in Australia use the RMB as a settlement currency.
Posted on: Wed, 17 Jul 2013 04:06:09 +0000
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