TORONTO, Oct 18 (Reuters) - Canadian businesses lag theirglobal counterparts in using the Chinese renminbi, even afterthe launch last year of North America's first yuan trading hub,according to an HSBC survey released on Tuesday.
The bank said usage of the Chinese currency by Canadiancompanies doing business with mainland China rose to 7 percentof those surveyed from 3 percent in 2015.
This was below the global average of 24 percent and suggestsCanadian companies may be missing an opportunity to increasesales to the world's second-largest economy, it said.
Using the local currency "can improve relationships orattract new buyers to a company's products. And clearlybusinesses in other markets are adjusting," Linda Seymour, headof commercial banking for HSBC Bank Canada, said in a statement.
Canadian businesses are lagging in using the Chinesecurrency despite the 2015 launch of North America's first yuanhub in Toronto, which enables the processing of yuan paymentsoutside of China.
Activity in the hub's first year fell short of theheightened levels expected at its launch and most of thetransactions came from the United States, an Industrial andCommercial Bank of China (ICBC) executive said inApril.
The Toronto hub may face increased competition in NorthAmerica after China said in June that it and the United Stateswould each pick a qualified bank to conduct yuan clearingbusiness in the United States.
China is Canada's second largest trading partner. InSeptember, the two countries said they would start exploratorytalks on a free trade pact. (Reporting by Fergal Smith; Editing by Richard Chang)