MARKET TALK:Expanded CNY Settlement L/T Positive To HK Bks -GS

24th Jun 2010 04:55

0355 GMT [Dow Jones] Goldman Sachs believes PBOC's announcement of making CNY-denominated trade settlement available worldwide is long-term positive for HK and its banking sector. Says this announcement and China's decision to allow more CNY flexibility, to be viewed as China's effort to increasingly internationalize CNY which should be positive for HK and its banks in particular as they help build a CNY offshore banking center here, take more CNY deposits and offer CNY trade finance/settlement products. Says, BOC HK (2388.HK) as sole CNY clearing bank in HK, has unique edge/competitive advantage in capturing CNY trade flows through HK, while ICBC (Asia) (0349.HK) should also benefit given trade focus and close co-operation with parent ICBC (1398.HK); adds, HSBC (0005.HK) and Standard Chartered (2888.HK) have regional/Asia/global network edge and should benefit more as and when scheme becomes more international. BOC HK +0.2% at HK$18.12, ICBC (Asia) +2.4% at HK$21.20. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 23, 2010 23:55 ET (03:55 GMT)