ABSCPA - Success Story of Using Hong Kong Company and Bank Account : RMB bank account for China trade and business

RMB is not international currency;
China is major production base in the world (export);
and China is becoming a stronger consumer of western product and services (importer);
as RMB raise in value, and fluctuate in value, it is worthwhile for both buyer and seller to use RMB for business;
however, a non-China company cannot keep RMB in bank account - especially outside of China;

RMB bank account is possible for hong kong company in hong kong

Hong Kong is granted special status by China government to allow Hong Kong company to keep RMB bank account in Hong Kong;
purpose is to facilitate China business;

How it works

a Hong Kong company can open multi-currency bank account with hong Kong HSBC;
when the Hong Kong company needs to pay RMB to China
- it ensures the China company is a "qualified company" in China to receive RMB from Hong Kong;
- then, gives instruction to Hong Kong HSBC to transfer RMB to China company;
- and instruct the bank from which bank account balance (HK$ , US$ , Euro .. etc.) to deduct the money;
- the company can enter into contract with HSBC to hedge the exchange rate;
when the Hong Kong company needs to receive RMB from China
- the China side money payer will clear the procedure in China;
- and the money will reach Hong Kong company RMB account in Hong Kong;
- the Hong Kong company can keep the money in RMB or convert to other currency;

Important

when the Hong Kong company needs to withdraw or transfer RMB balance in its RMB account, it needs to convert into other international currency first;
RMB keeping in RMB account can be used for investment purpose of RMB product (such as RMB bonds in Hong Kong);
the mechanism does not allow converting RMB for value speculation purpose;

US$ 1 to RMB in since 2004

Annoucement by People's Bank of China

Administrative Measures on Settlement of Cross-border Trade in RMB on a Trial Basis (Chinese).
Issuing Authority : People's Bank of China, Ministry of Finance, Ministry of Commerce, General Administration of Customs, State Administration of Taxation and China Banking Regulatory Commission.
Date of Issuance : 1 July 2009.
Effective Date : 1 July 2009.

ABSCPA - Hong Kong Company Incorporation, Offshore Company Formation