HSBC Global Trade and Receivables Finance

Transcription

1 HSBC Global Trade and Receivables Finance Promo/ng Palm Oil Export to China by Renminbi Trade September 2015 Vincent C Sugianto Country Head Global Trade & Receivables Finance Prepared for: 28 March 2012

2 Overview on Malaysia Export Business Palm Oil remains top five core trade business for Malaysia providing an export business of MYR20.37b (5.5%) from the total Export of Malaysia MYR368.33b

3 Palm Oil (Tonnes) Major Palm Oil Export Countries for Malaysia (Ex EU & Other Palm Products) 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , ,000 0 JAN - JUL 2015 JAN - JUL 2014 India overtakes PRC due to lower import of Palm Oil from Indonesia PRC Exports declined due to the higher import of Soybean locally in PRC

4 How The Interna/onal Businesses View RMB As A Currency For Trade RMB usage is increasingly driven by commercial considerations, with over half of Chinese companies ready to offer discounts in exchange for using RMB 73% believe their level of RMB cross-border trade business will increase 56% of Chinese companies would be willing to offer a discount 80% quoted buyer / supplier relationship as a primary reason for using RMB 42% consider documentation requirements as complicated HSBC commissioned survey. Base: 791 businesses from China, HK, Singapore, Australia, UK, US, Germany; RMB users and non-users; July 2013

5 Trade Instruments to Accommodate RMB Palm Oil Trade Flows for Exporters Export RMB Le8er of Credit Products Offered - Lecer of Credit Advising & Confirma/on - Lecer of Credit Discoun/ng - FX Hedging Open Account Product Offered - Receivables Finance - FX Hedging Commodity Structured Trade Finance Product Offered - Pre Export Finance - FX Hedging Benefits - Funding with compe//ve RMB rates - No limits/facili/es required on Corporate - Country and Bank Risk mi/ga/on - Intra HSBC Flows between China & Malaysia Benefits - Funding with compe//ve RMB rates - Off Balance sheet treatment* - Providing Balance Sheet treatment to reduce DSO - Buyer Risk Mi/ga/on backed by Insurance Benefits - Mone/za/on of future long term Commercial Contract with Buyer in RMB - High Value of funding up to 80% of Contract Value - Providing self- liquida/ng structure via exports of Palm Oil * Subjected to further due diligence

6 How Using RMB and HSBC for Trade Seclement Can Benefit You HSBC Competitiveness Exporter Chinese Counterparty Gain Diversify Hedge Competitive hedging pricing between RMB USD & RMB-MYR All in pricing to be offered for both Hedging and Funding Able to connect more Buyers in China with local Exporters in Malaysia End to End communication for easy and fast Trading transactions 175 outlets across 57 cities in China Able to include the cost of hedging in its price of goods Fix the profit margin as soon as LC is opened or earlier upon Contract signing Currency portfolio diversification Access to wider buyer base Improved buyer relationships and sales Helps exporter to support working capital of their buyer via RMB flows Competitive RMB facilities locally in Malaysia Natural hedge Save FX costs as payables and receivables would be in RMB Regulatory convenience for LC transaction of long tenors (from 90 days to 360 days) Improved working capital management by increasing their DPO via longer term of credit

7 Disclaimer The contents of this document are confiden/al and are intended for use by addressee exclusively and may not be divulged without the prior and express consent of the HSBC Group. The informa/on in this report is derived from a variety of sources we believe to be reliable. Care has been taken to ensure the accuracy of this document but HSBC does not accept responsibility for any errors or omissions and HSBC does not warrant the adequacy or completeness of the informa/on contained therein. This document is intended for discussion only and shall not be capable of crea/ng any contractual commitment on the part of HSBC. HSBC shall only become contractually bound on formal wricen agreement acknowledged by HSBC as crea/ng such contractual commitment. The informa/on, analysis and opinions contained herein cons/tute our present judgment which subject to change at any /me without no/ce. HSBC will not be liable for any delays or failures due to the occurrence of any war, act of terrorism, civil disturbance, industrial dispute, strike or blockade, or system, soiware or equipment corrup/on or failure, or changes in the relevant central bank or other regulatory bodies' requirements or without limita/on, any circumstances beyond the control of HSBC its agents or sub- contractors.