By Fiona Law

HONG KONG--HSBC Holdings PLC (HBC) and Bank of Communications Co. (3328.HK) said Wednesday they will increase their cross-border yuan business.

They will "fully collaborate" on businesses including trade finance, remittance, lending, offshore investment and finance, asset custody and fund management, retail banking, cash management and capital markets business, HSBC said in a statement.

Also, HSBC's commercial banking head of corporates business in Hong Kong Ng Siu On becomes a strategic cooperation consultant between the two lenders. He joins Bank of Communications' senior management, HSBC said in the statement.

Bank of Communications is China's fifth largest lender by assets and 19% owned by HSBC.

Write to Fiona Law at fiona.law@wsj.com