HSBC has assisted two multinational corporations by extending the renminbi cross-border sweeping solution on a national basis outside the China (Shanghai) Pilot Free Trade Zone (Shanghai FTZ). These are the first such transactions facilitated by HSBC since China’s central bank expanded the renminbi cross-border cash management pilot scheme from the Shanghai FTZ to the rest of the country in November.

 

HSBC has helped Johnson Matthey Group to unlock their surplus renminbi cash and optimize their working capital management with the setup of an renminbi cross-border two-way sweeping structure via one of its China subsidiaries based in Shanghai. Headquartered in the UK, and as one of the 100 largest companies listed on the London Stock Exchange, Johnson Matthey is a world leader in sustainable technologies operating in over 30 countries worldwide, with China as one of its key Asia-Pacific markets.

 

Johnson Matthey’s group treasurer Julian Tasker said: “The new solution meets our desire to integrate our domestic renminbi cash pool in China with our global funding and cash management model. The structure allows us to consolidate our operating cash in China with funds in other Asian locations in a multi-currency notional cash pool based in Hong Kong which can be managed as part of the global position. We are very pleased to see the latest policy development in China and look forward to exploring further opportunities in China in the future.”

 

Meanwhile, HSBC has implemented a renminbi cross-border two-way cash pool for Texwinca Holdings via its entities based in China’s southern province of Guangdong, and successfully completed the first sweeping transaction for the company. Headquartered and listed in Hong Kong, Texwinca is a world leader in coloured knit yarn and knit fabric production whose subsidiaries are engaged in casual wears retailing, with a primary focus on mainland China.

 

Edward Chan, chief financial officer of Texwinca Group, said: “The new solution means a great deal to Texwinca as it brings greater convenience to our cross-border treasury management. It enables us to transfer surplus RMB funds between overseas and domestic affiliates more efficiently, thereby raising our capital efficiency.”