The first cross-border yuan loan between Hong Kong and Shenzhen's planned financial hub Qianhai will be signed today, marking a new era for offshore transactions in the mainland currency. At least eight banks are set to be allowed to take part in the business, including HSBC Holdings (0005), Hang Seng Bank (0011), Standard Chartered (2888), Bank of East Asia (0023), ICBC (1398), China Construction Bank (0939), Bank of China (3988) and China Merchants Bank (3968).
Sources expect the banks will sign contracts with Qianhai-based enterprises on the proposed loans, and later file with the People's Bank of China for approval. But loan rates are open for negotiation between the banks and borrowers.
The Qianhai authority unveiled the first batch of 19 key projects developed in the district over the weekend. They include services platforms for oil refinery, financial transactions, insurance and payment.
All loans must be invested in Qianhai and cannot be used to buy financial products.
NATALLIE CAI
