PNC China

China is a key trading counterparty for many countries and is an important market for many companies around the world. As the economic influence of China and its currency – the renminbi (RMB) – on international commerce grows, PNC offers solutions and resources to help you succeed in this vital market.

We can help you take advantage of the growing role of the RMB in international trade with hedging tools and payment options to help you manage risk, improve your competitive position, and increase profitability. In addition, PNC’s Shanghai Representative Office provides support and insight to help U.S. companies navigate the day-to-day challenges of doing business in a changing China.

According to SWIFT, renminbi is currently the fifth largest global payments currency, making it an increasingly significant component of international trade.^[1]

Pay in local currency to potentially lower your costs and improve payment terms.

• The administrative cost of paying in US dollars can be 2% to 3% higher than dealing in local currency.
  
• Suppliers who invoice in renminbi no longer have to build in a buffer for potential exchange rate movements.
• A highly liquid renminbi forward market facilitates hedging your currency risk.
• Easily use renminbi in payments in and out of China.
• Make spot and forward payments in renminbi.
• Purchase and sell renminbi on behalf of companies doing business in China.
• Structure deliverable forward hedges denominated in renminbi for payment into mainland China.

Take advantage of cost reduction while managing currency risk.

• Increase the effectiveness and decrease the overall cost of hedging with deliverable forward and option strategies.
  
• Manage onshore renminbi (CNY) exposures through non-deliverable forwards.
• Hedge renminbi payables or receivables readily in a highly liquid market to keep the cost of hedging low.

PNC’s Shanghai Representative Office provides on-the-ground insight and support to help U.S. companies navigate the day-to-day challenges of doing business in China. Individuals with deep local knowledge and fluency in both English and Mandarin can:

• Provide guidance with selecting and opening local bank accounts and with advice on the process and intricacies of obtaining financing from banks in China
• Provide guidance on China's banking regulations and market/business environment.
• Setup introductions to local government and industrial zone officials, development offices, banks, accounting and law firms, the State Administration of Foreign Exchange (SAFE) and other local resources.
• Deliver business news/updates and in-depth analyses on key economic news and development.
• Help to connect you with parties that can assist with banking- or China-related issues, including status of wire transfers, documentary collections, and standby letters of credit by utilizing existing correspondent banks networks and contacts.