Chinese financial authorities granted licences to four foreign banks on Friday, allowing them to carry out transactions in yuan directly with Chinese firms.
Receiving the licences were the Shanghai branches of Mizuho Corporate Bank, of Japan, Hongkong and Shanghai Banking Corp. (HSBC) of the UK, Citibank NA of the US and Bank of East Asia Ltd. of Hong Kong. They will be permitted to conduct transactions in the Chinese currency only in areas where such operations are open to foreign firms, such as Shanghai, Shenzhen and Tianjin.
Mizuho Corporate intends to start factoring operations as early as this month for accounts receivable that Japanese firms in China are expecting from local companies.
Source: Asia Pulse Businesswire
