Vina Cheung expects RMB to rise to the third most-used global payment currency.

HSBC is betting Hong Kong will drive demand for China’s renminbi (RMB) as the currency strengthens and gains wider use in global trade.

“We do see very supportive market conditions that the currency can play a bigger role in the global financial system,” Vina Cheung, HSBC Holdings Plc global head of RMB internationalisation.

Cheung, who has led the bank’s RMB team for 13 years, helps companies and investors navigate cross-border payments and investments in the currency.

RMB recently hit a 34-month high of RMB6.93 a dollar, according to the People’s Bank of China, and ranks sixth in global payments by value, based on Society for Worldwide Interbank Financial Telecommunication (SWIFT) data.

Rising US-China trade tensions have pushed companies to diversify currency holdings, boosting offshore RMB demand.

“China is playing a bigger role in the global stage, particularly in the trade and supply chain,” Cheung said in a video call, citing the “China+1” strategy adopted by companies to secure their supply chains. “Right now, it’s China plus many. It has never been out of the formula.”

“We expect the investment flow between China and the rest of the world to continue. That’s why the Chinese currency will definitely be one of the good options for cross-border settlements, including investments,” she added.

HSBC has centralised RMB clearing in Hong Kong and doubled its facility to $227b, enabling faster, cheaper payments for multinational clients and Chinese firms. Cheung cited a gold-trading client whose Hong Kong RMB accounts cut delays and high offshore transaction costs.

The bank also participates in China’s Cross-Border Interbank Payment System, joining in late 2024, and has advised regulators on RMB internationalisation. Cheung expects RMB to rise to the third most-used global payment currency, up from fourth in late 2024 and early 2025, according to SWIFT.