Singapore corporates most dominant users of the RMB outside of China

Adoption nearly doubled to 26% in 2016.

Singapore corporates are the largest adopters of the RMB outside of Greater China, possibly due to potential financial gains from transacting in the currency, according to the HSBC RMB Internalisation study.

The report involves 1,600 business decision makers from Australia, Canada, mainland China, France, Germany, Hong Kong, Malaysia, Mexico, Singapore, South Korea, Taiwan, the UAE, the UK and the US who represent companies that conduct international business with or from China.

According to the report, usage by corporates in Singapore has almost doubled in a year to 26%, (from 15% in 2015) which was only surpassed by China, Taiwan and Hong Kong. Similarly,

Singapore corporates are the most likely to believe that they can gain a financial advantage (53% compared to 40% global average) or relationship advantage (52% compared to 44% global average) over competitors who are not using the RMB.

HSBC however noted that the pace of adoption will taper in the future.

The report reveals that of the current non-users, 28% expect to use RMB in future compared to 32% of non-user respondents in 2015.

Steven Cranwell, Head of Commercial Banking, HSBC Singapore said: “RMB usage almost doubled here as opportunistic Singapore corporates recognised value in the currency and were agile in adopting it. However, there are signs of a tapering in the short-term as fewer non-users expect to start using the RMB for cross-border activity compared to a year ago.”