Interview: Deutsche Bank upbeat about enhancing cooperation with Chinese firms, says executive

FRANKFURT, Oct. 17 (Xinhua) -- As Chinese enterprises increasingly expand into global markets, this trend is playing a key role in promoting the internationalization of the RMB and creating new cooperation opportunities, according to a senior executive at Deutsche Bank.

David Lynne, global head of Corporate Bank at Deutsche Bank, made the remarks in a recent interview with Xinhua ahead of attending this year's Sibos conference, a major financial services networking event organized by SWIFT, which will take place in Beijing from Oct. 21 to Oct. 24.

Deutsche Bank, which first established operations in China 152 years ago, offers a wide range of financial services to a diverse clientele, including multinational corporations, financial institutions, and Chinese firms.

"Multinational companies are thriving in China, and we continue to see strong foreign direct investment flowing into the Chinese market," Lynne remarked.

Lynne highlighted a shift in strategy for many European companies over the past few years, moving from exporting China-made products to adopting an "In China, for China" approach. This strategy has seen these companies deepen their roots in the Chinese market, building production bases and strengthening their local presence.

When it comes to Chinese companies expanding abroad, Lynne noted the pace of their international growth has accelerated significantly in recent years. He sees this as both a necessary and right move. In response, banking services for Chinese businesses venturing into foreign markets have expanded rapidly.

Through its Global Hausbank strategy, Deutsche Bank aims to strengthen its role as a "financial bridge" for Chinese companies expanding internationally. With a presence in 43 countries and regions, and cross-border financial services in over 140 markets, Deutsche Bank is well-positioned to offer one-stop services for Chinese firms, including trade and cross-border finance, cash management, foreign exchange (FX) risk management, and ESG regulatory consulting.

Lynne emphasized that "Deutsche Bank are able to better meet Chinese corporate needs due to the long-term relationships and deep trust that we have built up with them before they go overseas."

He also recognized China's advancements in sectors such as the digital economy, construction engineering, and electric vehicles (EVs), noting that these industries are contributing to the improvement of ecological and environmental quality.

As China emerges as a leader in sustainable finance, Deutsche Bank is actively participating in this growth. Deutsche Bank was among the first international banks to be included in carbon reduction support instruments by the People's Bank of China.

According to Lynne, the global shift toward a low-carbon economy and the growing demand for energy transformation present significant opportunities for collaboration between Chinese and German businesses and the broader financial community.

He also pointed out that the overseas expansion of Chinese companies is creating broad prospects for the internationalization of the RMB. "We are committed to working with leading Chinese banks to jointly advance the internationalization of the RMB," Lynne noted.

Since being granted permission to offer RMB foreign exchange services through its Hong Kong hub in 2019, Deutsche Bank has provided corporate clients, especially in Europe and the United States, with access to RMB foreign exchange and hedging solutions.

In 2023, Deutsche Bank China partnered with Brazil-based Sao Simao Co., a subsidiary of China's State Power Investment Corporation (SPIC), to complete the first yuan-denominated loan in Latin America.

The project, which involves domestic yuan financing and a cross-currency swap between the yuan and Brazil's real, offers new financing options for enterprises and marks a milestone for RMB internationalization in the region.

Lynne expects this business model to continue developing, noting that "it has become a trend to use RMB as a currency for denominating and pricing in certain global trade corridors."

"We see significant potential for the internationalization of the RMB," he added.