HSBC making it easier for Kuwait to do business with China

Simon Vaughan Johnson, Chief Executive Officer, HSBC Kuwait said "China is already the world's biggest exporter and second largest economy and is likely to achieve top global economic status within a few years. In this context, demand for China's currency, the Renminbi, is increasing and as restrictions are lifted, it is on course to become one of the world's global currencies within a few years".

He highlighted HSBC's strategic focus on enabling clients in the region to maximise international opportunities, with a particular focus on the world's emerging markets: "This deal clearly demonstrates our capacity to facilitate international business. Our teams are committed to working across geographies to better serve our clients, wherever they operate. HSBC has unique knowledge and experience of working in China, which can only benefit local companies in Kuwait and we see this new service as one which will help to develop business relationships between Kuwait and China, as well as differentiating HSBC Kuwait in the local market place".

"With our rapidly developing Treasury services at HSBC Kuwait, we have successfully concluded our first CNH deal with one of our largest local Kuwaiti corporate clients, with global operations in over 120 countries through 550 offices, having a strong emerging market focused business. With this service, the client's central treasury team in Kuwait now has the flexibility of being able to manage their Renminbi requirements locally, giving them the facility to pay their offshore suppliers or subsidiaries directly in Renminbi without any need for an onshore presence in Hong Kong or China. By providing such a service, our client is now able to centralise business in Kuwait where its treasury is located, making it easier to focus on developing its international business links".

Global market short codes
Global market short codes for the different types of RMB
• CNH denotes the deliverable RMB market available offshore where funds are settled via nostros in Hong Kong. CNH is quoted offshore and available to anyone with a nostro account.
• CNO denotes the onshore deliverable RMB market and is restricted to entities incorporated in China. Access to CNO is restricted to mainland entities and is subject to documentation since only genuine hedging of cash flows is permitted.
• CNY denotes the non-deliverable RMB market available offshore where all transactions are settled in cash, typically USD.