Renminbi Use Spikes as Benefits Build for U.S. Businesses

  Renminbi Use Spikes as Benefits Build for U.S. Businesses

     **17% of U.S. Companies Use Chinese Currency in Trade: HSBC Survey**

  **More Plan to Use the Currency as Trade with China Expected to Increase**

Business Wire

NEW YORK -- July 9, 2014

German and French companies are using renminbi to trade (RMB) and now,
increasingly, American businesses are too.

More U.S. businesses are using RMB to settle trade and more plan to use it
amid expectations by business leaders that their trade with China will
increase in the next 12 months.

Seventeen percent of U.S. businesses leaders said their companies had used RMB
to settle trade this year, up from nine percent last year, according to an
HSBC global survey of international business decision makers in 11 countries,
including 102 in the U.S. The global average was 22 percent. This places U.S.
businesses just behind French (26 percent) and German (23 percent) businesses
in terms of RMB use outside of China, Hong Kong and Taiwan.

Furthermore, 22 percent of U.S. businesses, who aren’t already using RMB, said
they plan to use it within the next six months to five years, up from eight
percent a year ago. Globally, an average of 32 percent of leaders said they
planned to use RMB in the future.

“As China continues to internationalize its currency, there are more
opportunities and considerations in trade, investment, cash management and
funding for U.S. companies,” said Steve Bottomley, Group General Manager,
Senior Executive Vice President, and Head of Commercial Banking for North
America, HSBC Bank USA, N.A. “U.S. businesses are becoming more comfortable
using RMB and are increasingly making it, or looking to make it, a part of
their competitive strategy and planning.”

Trade with China Set to Grow

U.S. business leaders may have good reason to do so. In the next 12 months, 55
percent of U.S. businesses said they expect trade with China, the world’s
largest trading nation, to grow, though this is down from last year, when 76
percent said it would.

U.S. businesses now sell about seven percent of their exports to China,
compared to just one percent a decade ago, and HSBC expects that to increase
to 14 percent by 2030. HSBC also forecasts that a third of China’s trade will
be settled in RMB by 2015 and that the currency will be fully convertible by
2017.

Financial, Relationship Benefits from Using RMB

Still, most U.S. businesses surveyed said they don’t use RMB because they
don’t understand or aren’t aware of the benefits of using it.

However, two-thirds of companies in mainland China and Hong Kong said foreign
firms doing business with China gain financial and relationship advantages
from using RMB, including receiving discounts on RMB-denominated transactions.
Additionally, global leaders said the top reasons for using RMB were meeting
demand from counterparties, minimizing foreign exchange risks and increased
convenience.

“U.S. businesses can use RMB to hedge against fluctuations and potentially
reach additional suppliers,” said Martin Brown, Executive Vice President and
Head of Large Corporate, Commercial Banking, HSBC Bank USA, N.A. “It may also
improve business relationships by making it more convenient for their Chinese
counterparties, who may be reluctant to take on dollar exposure because their
cost base is denominated in renminbi.”

When asked what might help non-RMB users become ones, global business leaders
said more simple procedures, further liberalization of the exchange rate;
expansion of RMB eligible transactions; and the availability of more guidance.

To learn more about RMB, please visit:

HSBC RMB Resource Centre www.rmb.hsbc.com or HSBC Global Connections
www.globalconnections.hsbc.com

Notes to Editors

For updates from the HSBC Press Office, follow us on Twitter:
www.twitter.com/HSBC_Press

About the RMB Survey

HSBC commissioned Nielsen to conduct a market survey of 1,304 international
companies that currently do business with Mainland China or are a business in
Mainland China that imports/exports outside of the region. The survey was in
field between 3 April and 7 May 2014 and was undertaken to understand clients’
attitudes towards using RMB, reasons of using / not using RMB for trade and
investment activities, as well as other insights they can offer about the RMB.
The research surveyed international businesses in Australia (n=100), China
(n=200), Germany (n=100), Hong Kong (n=200), Singapore (n=100), the UK
(n=100), the USA (n=100), Canada (n=100), Taiwan (n=100), France (n=100), and
the UAE (n=100). Of the companies surveyed, approximately 50% had an annual
sales turnover between of US$3M-50M, 40% had a turnover of US$50M-500M and 10%
had an annual sales turnover above US$500M. (Copyright© 2014, The Nielsen
Company)

About Nielsen

Nielsen N.V. (NYSE:NLSN) is a global information and measurement company with
leading market positions in marketing and consumer information, television and
other media measurement, online intelligence and mobile measurement. Nielsen
has a presence in approximately 100 countries, with headquarters in New York,
USA and Diemen, the Netherlands.

HSBC Commercial Banking

For nearly 150 years we have been where the growth is, connecting customers to
opportunities. Today, HSBC Commercial Banking serves businesses ranging from
small enterprises to large multinationals in almost 60 developed and
faster-growing markets around the world. Whether it is working capital, trade
finance or payments and cash management solutions, we provide the tools and
expertise that businesses need to thrive. With a network covering three
quarters of global commerce, we make HSBC the world’s leading international
trade and business bank. For more information see
www.hsbc.com/1/2/business-and-commercial

About HSBC Bank USA, N.A.

HSBC Bank USA, National Association (HSBC Bank USA, N.A.),  with total assets
of US $179.6bn as of 31 March 2014 (US GAAP), serves 3 million customers
through retail banking and wealth management, commercial banking, private
banking, asset management, and global banking and markets segments. It
operates more than 240 bank branches throughout the United States. There are
over 155 in New York State as well as branches in: California; Connecticut;
Delaware; Washington, D.C.; Florida; Maryland; New Jersey; Oregon;
Pennsylvania; Virginia; and Washington State. HSBC Bank USA, N.A. is the
principal subsidiary of HSBC USA Inc., an indirect, wholly-owned subsidiary of
HSBC North America Holdings Inc. HSBC Bank USA, N.A. is a member of the FDIC.

Contact:

Media Inquiries:
HSBC Bank USA, N.A.
Laura Powers, +1-212-525-0115
laura.s.powers@us.hsbc.com
 
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