Yuan trade pilot scheme kicked off

Three Shanghai companies became the first batch to complete cross-border yuan trade settlement deals yesterday, marking the launch of the nation's long-anticipated pilot renminbi trade settlement scheme.

The first international transaction of a $2-million power plant equipment contract was made between an affiliate under Shanghai Electric Group and Indonesia's PT Central Daya Energi, which paid the money via Bank of China (Hong Kong), or BOCHK, to Bank of China's Shanghai Branch.

Shanghai Silk Group and Shanghai Huanyu Import & Export Co signed contracts with Hong Kong's China Products Trading (HK) Ltd and Ever Keen International Ltd, respectively, the same day, with the Shanghai branch of the Bank of Communications offering the transaction services.