CORPORATE customers of United Overseas Bank (UOB) in Singapore and Malaysia can now open accounts in Chinese yuan and settle cross-border trades in the currency as well.

Corporate customers in Hong Kong will be next.

UOB joins OCBC and DBS Group Holdings in offering similar cross-border services.

The move comes as the Chinese government unveiled a pilot scheme last month granting about 400 companies in Dongguan, Guangzhou, Shanghai, Shenzhen and Zhuhai the right to settle trades with overseas counterparties in yuan.

OCBC was the first Singapore bank to participate in the scheme.

UOB will be rolling out the scheme in Hong Kong soon. It is already offering its clients there wholesale Chinese yuan bank-notes services.

Customers have welcomed the trade settlement service since it was launched here on July28, said UOB, with interest from customers who want to trade in yuan.

Companies will also be able to open Chinese yuan-denominated accounts to help them better manage their cashflows.

UOB said it may offer the cross-border trade settlement service in other Asean countries.

This article was first published in The Straits Times.