Hang Seng sets RMB prime rate

Hang Seng became the first bank in Hong Kong to set an RMB prime as the base rate for RMB finance.

The Bank's RMB Prime Rate of 3.25 percent has come into effect on 19 March 2010.

An RMB Trade Finance Standard Rate of RMB Prime Rate plus 0.5 percent per annum—currently equivalent to 3.75 percent per annum—has also been set by the Bank.

"As the business partner of a large group of corporate and commercial customers, Hang Seng is committed to enhancing its cross-border services and corporate wealth management offerings in response to changing market conditions and customer needs. By launching an RMB Prime Rate on top of our wide range of RMB services, we can better assist our customers with capturing more cross-border business opportunities," said Mr. Nixon Chan, Deputy General Manager, Head of Corporate and Commercial Banking.

Until 30 June 2010, customers who successfully apply for Hang Seng RMB trade finance loans can enjoy a preferential rate of Hang Seng RMB Trade Finance Standard Rate minus 1.25 percent per annum, which is equivalent to 2.5 percent per annum as of 19 March 2010.

Following the announcement of the pilot cross-border RMB trade settlement scheme in July 2009, Hang Seng launched a series of cross-border RMB services, including RMB deposit accounts for trade settlement as well as trade services and finance.

Towards the end of last year, the Bank signed an agreement with China Export and Credit Insurance Corporation to strengthen one-stop buyer credit protection and accounts receivable finance solutions.