I. Business Overview
Cross-border RMB business, such as RMB cross-border settlement, financing, investment and trading businesses, are performed by the Bank for enterprises to meet their needs for true and compliant cross-border business in accordance with Chinese cross-border RMB policies aiming to serve the real economy and promote trade and investment. Enterprises can use RMB to settle all cross-border transactions which can be legally settled with foreign exchange.
Furthermore, the two-way opening up of China’s financial market has also brought new opportunities for cross-border RMB business. There is an increasing demands for the investment in domestic equity markets from RMB Qualified Foreign Institutional Investors (RQFII), the investment in domestic interbank bond market from overseas institutional investors, the issuance of RMB bonds in overseas market by domestic entities, the issuance of RMB bonds (Panda Bonds) in China by overseas entities, Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and Bond Connect. The Bank can provide abundant cross-border securities investment products and services for domestic and foreign investors.
II. Cross-border RMB Business under Current Account
Following the business development principles of “Know Your Customers”, “Know Your Business”, and “Due Diligence”, the Bank conducts cross-border RMB settlement businesses for enterprises such as commodity trade, service trade, income and current transfers.
III. Cross-border RMB Business under Capital Account
The cross-border RMB business under capital account mainly includes the cross-border RMB settlement, financing, investment and trading under direct investment, securities investment and cross-border financing.
The cross-border direct investment mainly includes foreign direct investment and outward foreign direct investment. The cross-border financing mainly includes cross-border trade finance, cross-border project financing, overseas lending by domestic companies and cross-border direct loans. The cross-border securities investments mainly include investment in domestic equity markets from RQFII, overseas investment from RMB Qualified Domestic Institutional Investors, the investment in domestic interbank bond market from overseas institutional investors, Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, Bond Connect, Mutual Recognition of Funds (MRF) between the mainland and Hong Kong.
IV. Innovative Business for Free Trade Zone
The innovative business for free trade zone refers to the central overseas collection and payment of funds in RMB and foreign currencies, free conversion of free trade zone accounts, discretionary settlement of capital for free trade zones by employing the innovative policies in the free trade zones, such as the greater range of RMB cross-border use and the accounting system of free trade zone, to help enterprises enjoy convenient cross-border investment and financing policies in and out of the free trade zone.
Through the collaboration between the domestic and overseas institutions, the Bank works to promote the innovation and development of the free trade zone businesses, and has built abundant product lines covering settlement, financing, investment and trading, including cross-border two-way domestic and foreign currency fund pools, local and foreign currency central payment, receipt, offsetting and liquidation, supply chain financing, financial leasing, cross-border M&A, ODI and FDI cross-border investment services, domestic and foreign currency structured deposits of legal persons in free trade zones, exchange rate and interest rate risk management products.
V. Overseas RMB Clearing Bank
ICBC has been serving as the overseas RMB clearing bank authorized by the People’s Bank of China in seven countries including Singapore, Luxembourg, Qatar, Thailand, Canada, Argentina, and Russia. It is the first commercial bank establishing the RMB clearing network covering the three major time zones of Europe, America and Asia, capable of providing 24-hour RMB clearing services for customers around the world.
The information contained herein is for reference only. ICBC reserves the right of final interpretation.