HSBC has reported that its Chinese currency banking business now has the widest geographic reach of any foreign bank in mainland China, after the bank's Xiamen branch received approval to offer local currency banking services to Chinese businesses.
Xiamen, in the southeastern province of Fujian, is the ninth HSBC branch to receive a renminbi (RMB) license from the China Banking Regulatory Commission, which regulates all commercial banks, including the development of foreign financial institutions.
Branches are only eligible to apply for the RMB license when they’ve been operational for two years. All HSBC’s eligible branches across mainland China – Shanghai, Shenzhen, Guangzhou, Qingdao, Dalian, Wuhan, Tianjin, Beijing and Xiamen – can now provide the full suite of RMB services to Chinese businesses.
Before acquiring the license, HSBC’s Xiamen branch, which opened in 1986, was limited to offering foreign currency services.
The license allows the branch to extend its RMB service to domestic Chinese and multinational corporations and foreign nationals, as well as Hong Kong, Taiwan and Macau residents, handling their savings, loans, international settlement, foreign exchange and other operations in the RMB currency.