KUALA LUMPUR: HSBC Bank (China) Co Ltd has received the approval from China’s Central Bank to be among the first batch of market-makers for the direct trading of the renminbi and yen in China’s inter-bank foreign exchange market.
In a statement, the Hongkong and Shanghai Banking Corp Ltd said HSBC China would participate in the market upon the launch of Renminbi-yen trading today to provide liquidity to the market.
“The direct currency trading is expected to strengthen the trade and investment ties between China and Japan,” it said.
Managing director and head of global markets, David Liao, said the direct Renminbi-yen trading was a vital move towards building a representative and liquid onshore benchmark for major non-US dollar crosses.
“It is also a significant step forward in the internationalisation of China’s currency, supporting the growing demand for Renminbi payment and settlement globally.
“As one of the most active participants in China’s inter-bank foreign exchange market and a leading international bank supporting Renminbi’s internationalisation developments, we will fully leverage our global foreign exchange trading expertise to provide liquidity to the market for Renminbi-yen trades,” he said. — Bernama