FINANCE

Global Companies Could Cut Funding Costs With More Yuan Use

Published: Mar. 11, 2026 6:04 p.m. GMT+8

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Global companies could cut funding costs by up to 2% a year by increasing their use of Chinese yuan in corporate financing to better match their trade and operating exposure to the currency, according to a report by Standard Chartered.

The report, released Wednesday and based on a survey of nearly 300 large companies across 19 industries, found that while 23% of respondents’ revenue and 25% of their costs involve yuan exposure, only 14% of their debt is denominated in the currency. The gap suggests significant room to expand yuan use in global corporate funding.

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Global companies could reduce annual funding costs by up to 2% by increasing yuan-denominated financing, matching trade exposure.
While 23% of revenues and 25% of costs involve yuan, only 14% of corporate debt is in yuan; lower borrowing costs in China are a key factor.
Yuan adoption is highest in Greater China and North Asia and rising in Southeast Asia, Africa, and the Middle East, especially in sectors involving Chinese partners.

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Standard Chartered: Standard Chartered's report suggests that global companies could significantly reduce funding costs, by up to 2% annually, by increasing their use of the Chinese yuan in corporate financing. This would better align their financing with their trade and operational exposure to the currency. The report, based on a survey of nearly 300 large companies, highlights the current discrepancy between yuan exposure in revenue/costs and yuan-denominated debt. Lower borrowing costs in China are a key factor in these potential savings.

AI generated, for reference only