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. HSBC forecasts that the Chinese currency will be a top-three global trade currency in the next five years. About 10% of China’s US$6 trillion trade was settled in renminbi in the first quarter of 2012 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, the bank said.

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 renminbi 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.”