Report | Nearly a quarter of companies plan to increase RMB financing

Standard Chartered Group has released its Renminbi internationalization report, “The Renminbi in Motion: A New Era for Cross-Border Business Momentum,” showing that global companies have already widely adopted the renminbi for trade and supply-chain activities, but there is still room for further growth in financing and treasury management.

The report surveyed nearly 300 large enterprises across 19 global industries. The results show that in Asia, developments in trade activity, supply-chain systems, and capital market infrastructure have created conditions for global companies to use the renminbi more extensively. The report also cites data from the London Stock Exchange, indicating that if companies switch to the renminbi for working-capital financing, they could potentially save up to 2% in costs each year.

Among the surveyed companies, 23% of revenue and 25% of costs involve renminbi exposure, but only 14% of debt is denominated in renminbi, reflecting a gap between how companies use the renminbi for operational exposure and their financing strategies. Nearly one quarter (24%) of the companies surveyed said that they will increase their use of the renminbi for onshore and offshore financing over the next three years.

Wu Yasi, Head of the Open Banking and Renminbi Internationalization team at Standard Chartered China, said: “At present, an increasing number of international companies have already widely used the renminbi in cross-border trade, procurement, and supply-chain activities. Together with the Chinese government’s recent ‘Fifteen Five’ plan, which emphasizes expanding the use of the renminbi in international trade and investment/financing, this creates more opportunities for the renminbi. Hong Kong has also recently introduced a series of measures, including increasing the total renminbi business funding allocation to RMB 200 billion, to enhance offshore renminbi liquidity and facilitate trade financing, aligning with the ‘Fifteen Five’ plan and leveraging its advantages as a ‘super connector.’ These steps will further consolidate Hong Kong’s position as the world’s largest offshore renminbi business center, pushing forward the internationalization of the renminbi.”