Bank of China announces yuan trade deal with HK's HSBC

BEIJING, July 4 (Reuters) - China's largest foreign exchange bank, the Bank of China, has reached a yuan trade settlement agreement with HSBC bank in Hong Kong, taking advantage of new rules allowing such deals. Under rules announced this week, foreign banks will be able to buy or borrow yuan from Chinese mainland lenders to settle trade in Hong Kong and Macau under a pilot scheme. The central bank chiefs of China and Hong Kong signed a memorandum on Monday, paving the way for the scheme, which analysts say is a move to greater international use of the yuan, also called the Renminbi. On Saturday, the Bank of China (BOC) announced on its website (www.boc.cn) that it reached agreements with HSBC and BOC's own separately listed Hong Kong unit to carry out yuan trade transactions. 'With the signing of... [read full story]                    

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