China expanding cross-border renminbi lending pilot

HONG KONG - HSBC is among the first foreign banks to facilitate cross-border renminbi loans for Mainland China corporates operating from the Nansha Free Trade Zone (FTZ) and Kunshan areas that are now participating in China’s cross-border RMB lending pilot.

The cross-border RMB lending pilot was extended in July to the Nansha and Hengqin FTZs in the southern province of Guangdong and Kunshan Deepen Cross-Strait Industrial Cooperation Experimental Zones in eastern Jiangsu Province.

In Nansha and Hengqin, companies are now able to borrow in RMB from banks in Hong Kong and Macau. Additionally, in Kunshan, Taiwanese corporates are allowed to borrow RMB from banks in Taiwan.

Under the pilot scheme, HSBC has assisted a leading feed producer in Nansha to borrow RMB20 million from HSBC Hong Kong, and a Taiwan-invested electronics company in Kunshan to obtain a RMB15 million loan from HSBC Taiwan. www.hsbc.com (ATI).