HSBC India has executed the first renminbi (RMB) denominated cross-border trade transaction in India for a major pharmaceuticals company, and said that the transaction had seen the bank join a growing list of HSBC entities that have concluded their first trade settlement in RMB.
HSBC added that China is one of India’s largest trading partners and bilateral trade between the two countries has been growing rapidly for the past few years. It forecasts that RMB will be a top three global trade currency in the next five years. Ten percent of China’s US$6 trillion trade was settled in RMB in Q112 and by 2015 HSBC expects this to rise up to 50%. India and China along with other emerging markets in south Asia have been instrumental in leading an eastward shift in global trade.
Sandeep Uppal, managing director and head of commercial banking, HSBC India, said: “India-China is a very important and active trade corridor and we see the first RMB settlement as an important milestone in the fast-growing bilateral trade between the two countries. We have a clear focus on emerging markets, and this deal showcases HSBC’s capabilities in facilitating international business in the region.”
Surath Sengupta, head of global trade and receivables, finance, HSBC India, added: “South-south connections are set to revolutionise the global economy in the same way that trade between the developed nations exploded in the 1950s and 1960s and we expect the 21st century to see significant trade growth between these two emerging nations. The scale of opportunity between India and China is huge and HSBC is well positioned to support trade between both the countries.”
Sentiment in the financial services sector deteriorated in the three months to September, as firms digested the challenges of lower interest rates and the uncertainty caused by the vote to leave the European Union (EU), according to the latest CBI/PwC Financial Services Survey.
However, a London summit on the industry’s introduction of the technology cautions that testing and acceptance are still at an early stage and firms should proceed with caution.
The proposals of both US presidential candidates could shake up operating conditions in several sectors, reports the credit ratings agency.
The Danish shipping and oil conglomerate confirmed that it will separate its businesses into stand-alone transport and energy divisions.