Renminbi globalization to bring more business

The globalization of the yuan and the investing abroad strategy of Chinese firms will bring more businesses to foreign banks in China like Société Générale, the second-largest bank by market value in France, a senior executive of the bank told the Global Times.

China's financial reform toward the globalization of yuan and freer capital movement is important for foreign banks, "as it is where we bring added value to local corporates by helping them to become more internationalized," said Philippe Lelarge, CEO, Corporate Banking & Financial Institutions at Société Générale China.

Incorporated in China in 2008, the French bank just opened a branch in Harbin in Northeast China's Heilongjiang Province in 2013, focusing on the cross-border business between China and Russia.

"We are offering services in the ruble to Chinese corporates so that they can do cash management and trading activities, import and export," Lelarge said.

In December, China's State Council authorized Suifenhe at the China-Russia border as the country's first pilot zone where the Russian ruble will be allowed to be used alongside the yuan.

Société Générale also offers services to clients in African and European countries to do renminbi business.

China has transformed from a technology and investment importer to an investment exporter over recent years with the Chinese government's call for more domestic firms to invest abroad, which can be seen from the evolution of banking activities, Lelarge said.

Since 2008, with an expanded network, "we are working closely with Chinese corporates and assisting them in their going abroad strategy through different services, from basic trade finance, providing them advice and help to understand local regulations, helping them on projects of M&As, and proposing targets of acquisitions," he said.