HSBC starts yuan cross-border trade settlement service

HSBC China launched its renminbi cross-border trade settlement services Friday in Shanghai, and Shenzhen, Guangzhou and Dongguan of south China's Guangdong province.

The bank has also been granted the status of a domestic agent bank and is able to open onshore yuan accounts for overseas banks participating in the pilot program.

The Bank of China, China's largest foreign exchange bank, transacted the country's first cross-border yuan trade settlement deal on July 6.

China's State Council, or Cabinet, announced in April a pilot program to allow exporters and importers in Shanghai, Guangzhou, Shenzhen, Zhuhai and Dongguan to settle cross-border trade deals in renminbi, or yuan.