HSBC Australia Unit Completes Its First Cross-Border Yuan Trade Settlement

HSBC Holdings Plc’s Australian unit completed its first cross-border yuan trade settlement with a transaction for aluminum trader PanAsia Group （Australia）.

The deal was with PanAsia’s supplier in China, which also banks with HSBC in Shenzhen, according to an e-mailed statement today from the bank.

“China is one of the most important growth markets for Australian companies and the ability to settle trade and other international payments” in yuan gives companies increased flexibility, Andrew Skinner, head of trade and supply chain for HSBC Bank Australia Ltd. said in the statement.

China approved use of the yuan to settle cross-border trade with Hong Kong in June 2009, part of a drive to reduce reliance on the U.S. dollar. The central bank said last month it will allow more regions and companies to settle cross-border trade in the nation’s currency and boost offshore usage of the yuan.