HSBC launches FX-linked renminbi structured notes

There was further evidence of the increasing internationalisation of the Chinese currency yesterday. HSBC executed two trades for its commercial banking clients within hours of launching its new renminbi-denominated currency-linked structured deposits.

The transactions followed revisions to the Renminbi Clearing Agreement agreed on Monday by the People's Bank of China PBoC and Bank of China Hong Kong, which acts as Hong Kong's renminbi clearing bank. Under the revised agreement, there will no longer be restrictions on Hong Kong banks establishing renminbi accounts for and providing related services to financial institutions. In addition, both individuals and companies can now conduct renminbi payments and transfers through local banks.

HSBC's renminbi foreign exchange-linked...