Frequently Asked Questions

No - RMB is not a fully-convertible, international currency. Corporate RMB accounts can be opened by onshore entities only.

Companies that are HSBC customers but that are not resident in China are permitted to open foreign currency ("FCY") accounts with HSBC in China , but RMB accounts can not be opened.

To open an offshore FCY account, account opening documents need to be presented that fully satisfy regulatory requirements, and that confirm that the purpose of account opening is justified by genuine business needs.

Some of the main types of non-resident FCY accounts include: temporary capital accounts, foreign direct investment accounts and other accounts.

• Temporary capital accounts
  are FCY accounts that may be used by non-resident entities to hold capital and funds for the payment of expenses incurred prior to the subsequent establishment of a foreign-invested entity ("FIE"). The account requires the approval of the State Administration of Foreign Exchange ("SAFE") before being opened. Once the FIE has been established, the funds in the temporary capital account can be transferred into the FIE's capital account. Where the funds in the temporary capital account need to be converted into RMB or transferred, SAFE approval is required for each transaction.
• Foreign direct investment accounts
  accounts are FCY accounts to be opened and used by non-resident entities to hold funds for payment related to their direct investment (including mergers and acquisitions) in China . The account requires the SAFE approval before being opened. The funds therein shall be used for the designated purpose and SAFE approval is required for each transaction.
• Other accounts
  are for the receipt of FCY funds only, and the FCY funds in this account cannot be converted into RMB. The funds must be paid either to suppliers in China in FCY, or paid to suppliers outside of China in FCY. Opening this type of account does not require SAFE approval

Due to their legal structure, representative offices are not permitted to engage in direct profit-making activities i.e. they are not permitted to issue invoices for sales, accept payment for goods or contract for sales in the name of the home office.

Representative offices can hold both basic and general RMB accounts. Representative offices can hold FCY accounts for office expenses.

Provided that the cities in question are within our RMB catchment area, you do not need to contact the three branches separately. You can choose one branch as your primary contact (normally where your head office and decision makers are located) to co -ordinate your banking needs in various HSBC branches.

Yes, we provide you with Renminbi cash withdrawals/deposits*, foreign currency notes withdrawals, foreign currency cash deposits, statement requests and certificates of balances services, across our branch network, regardless of which branch your account is maintained in.

*Renminbi cash withdrawals/deposits are for HSBC Premier customers only.

Generally speaking, borrowed funds must not be used to conduct stock transactions, and the borrowing term for a bank loan shall not exceed 10 years. The borrower needs to ensure that there is adequate headroom within their borrowing gap to undertake the required foreign debt registration when cross-border guarantees are realised.

With the exception of export negotiation, foreign currency loans, including packing credits, cannot be converted into RMB.

RMB facilities can only be offered by licensed branches of foreign banks within the RMB catchment area.

The lending base rate is fixed by the People's Bank of China ("PBoC"), and banks are permitted to lend not lower than 90% of the base rate.

Foreign enterprises can also get RMB funding through Entrusted Loans: please contact HSBC for more details on these products

RMB loans of a foreign-invested enterprise can be secured by guarantees from non- PRC entities.

The sum of the cumulative medium and long term foreign debts, the outstanding balances of short term foreign debts and the amount of the foreign guarantees should not exceed the borrowing gap (i.e. the surplus of the FIE's approved total investment over its registered capital).The calculation of foreign guarantees is now based on actual outstanding instead of the limit. Upon realization of the foreign guarantee, the borrower should register the claim as foreign debt with SAFE within 15 days from the date of the realization of the guarantee provided that there is a sufficient borrowing gap.