HSBC made its debut at the 2025 China International Finance Exhibition held in Shanghai from June 18 to 20. The bank participated in the CIPS cross-border bank-enterprise cooperation special event, showcasing its role as a direct participant in the CIPS system in both mainland China and Hong Kong. HSBC is actively promoting the use of the RMB in cross-border trade and investment financing, as well as the development of the offshore RMB market.
Key Insights from Sun Lei
Sun Lei, Global Director of Local and Innovative Payment Products at HSBC’s Global Payment Solutions Department, expressed optimism about the future of the RMB in cross-border transactions. She highlighted several key points:
Operational Efficiency and Cost Management:
The use of the RMB in cross-border trade can enhance operational efficiency and cost management for enterprises, especially for Chinese-funded enterprises engaged in international trade and business. This helps mitigate the impact of exchange rate fluctuations and lower settlement costs, improving capital efficiency.
Growth Potential:
Sun Lei believes that the demand for the RMB from both domestic and foreign enterprises will continue to rise. The use of the RMB in cross-border trade and investment financing is poised for significant growth, driven by the need for more efficient and cost-effective solutions in a global trade environment marked by rising costs and supply chain reshaping
Hong Kong’s Role:
Hong Kong, as the world’s largest offshore RMB business center, handles approximately 75% of the world’s offshore RMB payment settlements. Sun Lei noted that various measures to accelerate the internationalization of the RMB have been continuously introduced in the Hong Kong market. These include the development of the interconnection mechanism between mainland China and Hong Kong, with expanding asset classes and scales, and the launch of a 100 billion yuan RMB trade financing liquidity support measure by the Hong Kong Monetary Authority.
Future Outlook
Sun Lei emphasized that efforts can continue to be made to expand the scale of the RMB fund pool in Hong Kong to support the further development of offshore RMB business. This includes leveraging the growing interconnectivity between mainland China and Hong Kong, as well as addressing the increasing demand for RMB financing.
Conclusion
HSBC’s participation in the 2025 China International Finance Exhibition underscores its commitment to promoting the use of the RMB in cross-border trade and investment financing. With significant growth potential and ongoing efforts to enhance the offshore RMB market, the RMB is poised to play an increasingly important role in global trade and finance.
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