HSBC has become a Direct Participant of Hong Kong’s euro clearing system,enabling the bank to offer more efficient settlement of euro transactions for its corporate and commercial customers.

To celebrate the expansion of HSBC’s clearing capabilities in Hong Kong, the bank will waive fees on euro clearing transactions undertaken by clients in April 2006.

The local euro clearing system was commissioned in 2003 by the Hong Kong Monetary Authority, facilitating the efficient settlement of euro transactions on a real-time basis within the Hong Kong time zone. It eliminates the foreign exchange settlement risk that arises from time zone differences when transactions are done between different areas.

The key functions of the euro clearing system include an interbank Real Time Gross Settlement (RTGS) system, Payment versus Payment (PvP) settlement for euro/US dollar, and euro/Hong Kong dollar foreign exchange transactions.

The local USD clearing system, of which HSBC is the Settlement Institution and a major clearing member, offers similar functionalities with the additional feature of local and cross-border paper clearing (Guangdong Province including Shenzhen).

HSBC is also a clearing member of the RMB local clearing system, which currently offers RMB cheque clearing services for the clearing of RMB cheques drawn on banks in Hong Kong and presented to banks in Guangdong Province including Shenzhen. It also offers RMB remittance and RMB bank card payment. ( HSBC )

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