HSBC and Standard Chartered will take a larger share of China–ASEAN trade finance from Chinese banks.

China–ASEAN trade is set to increase as the People’s Bank of China eases cross-border settlement and Hong Kong moves closer to joining the Regional Comprehensive Economic Partnership. So foreign banks (HSBC and SC) with established Southeast Asian networks will capture more MNC trade-finance business, squeezing domestic Chinese banks (who relied on the payment barriers to stay competitive). Beijing will accept the heat from domestic banks to bring more regional trade onto the renminbi payment system.