Guangzhou Completes First Cross-Border Carbon Trade Via New Yuan Settlement Account
Dou Shicong
/SOURCE : Yicai
Guangzhou Completes First Cross-Border Carbon Trade Via New Yuan Settlement Account

(Yicai Global) Feb. 26 -- China has completed its first cross-border carbon trade after its central bank rolled out a policy earlier this year to encourage yuan-based international business.

An offshore energy firm bought 100,000 tons of carbon credit via the China Emission Exchange in Guangzhou, Guangdong province, official Communist Party news outlet Southern Daily reported. The deal was worth around CNY1.3 million (USD208 million) and was settled through a special account with Shanghai Pudong Development Bank Co.'s Guangzhou offices.

The People's Bank of China and Guangdong provincial government created the new bank accounts specifically for cross-border yuan trades. Some experts believe it is a significant measure to encourage green development using modern financial resources in China's largest regional economy.

HSBC Plc's The Hongkong and Shanghai Banking Corp. announced on Feb. 14 that it had become the first foreign lender to complete cross-border yuan remittance for a personal customer.

PBOC unveiled a policy earlier this month that sought to bolster cross-border yuan settlement for businesses and individuals, and encourages foreign investors to use the yuan for direct investment. 

 

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Keywords: Guangzhou , Carbon Emissions , Yuan , Pboc , Shanghai Pudong Development Bank