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  Home Page > Corporate Banking >Financial market >Products & Services >Investment products >Spot FX Trading
Spot FX Trading
 

I. Business Description
During the spot FX transaction business, the customer conducts the spot foreign exchange trade between different types of currencies (excluding RMB) through the Bank’s foreign exchange transaction system during the transaction hours specified by the ICBC.
This product is the most fundamental foreign currency-to-foreign currency exchange tool, and it has simple and easy-to-understand trade structure. Through it, the customer may realize conversion of the foreign exchange currencies on the premise of voluntarily assuming related risks, earn the exchange spread income from the foreign exchange transaction, or obtain the interest spread income by converting a kind of foreign exchange with lower interest rates to another foreign exchange with higher interest rates.

II. Target Customers
The individuals and corporate customers such as corporate and public institutions, governmental agencies, social organizations, armies, and foreign invested enterprises that are established within the territory of the People’s Republic of China (excluding Hong Kong, Macau and Taiwan) with related service needs.

III. Features and Advantages
i. Multiple manners of transaction: in addition to the real-time foreign exchange transactions, ICBC also accepts the customers’ pending orders. The pending orders include profit-taking pending orders, stop-loss pending orders, bilateral pending orders, recycling pending orders, one-on-many pending orders, trigger pending order and supplementary pending orders etc.
ii. Diverse currencies of transaction: ICBC offers transaction of different currencies, including US dollar, Japanese Yen, Hong Kong dollar, British Pound, Euro, Canadian dollar, Swiss franc, Australian dollar and Singaporean dollar etc., to meet the diverse transaction needs of customers.
iii. Preferential prices: ICBC is one of the most influential and active participants in the international inter-bank foreign exchange market, and has established sound business ties with many top-notch banks in the world. It is able to make deals at relatively preferential prices in the foreign exchange market, and therefore offers the customers with preferential prices.

IV. Conditions for Application
i. Personal customers shall meet the following conditions in order to open the spot FX transaction with ICBC:
1. Domestic and overseas individuals with full civil capacity;
2. Having opened personal multi-currency settlement accounts with ICBC.
ii. Corporate customers shall meet the following conditions in order to open the spot FX transaction with ICBC:
1. Domestic corporate or public institutions, government agencies, social organizations and legal agencies of foreign institutions in China, as well as their authorized branches.
2. Having opened foreign exchange accounts with ICBC.
V. Sign-up
i. Personal customers shall fully understand the characteristics and relevant risks of foreign exchange transactions, carefully read and undertake to comply with provisions of the Foreign Exchange Transaction Agreement of Industrial and Commercial Bank of China Limited, the Instructions on Foreign Exchange Transaction of Industrial and Commercial Bank of China Limited and the Rules on Foreign Exchange Transaction of Industrial and Commercial Bank of China Limited etc., and meanwhile, open or designate a personal multi-currency settlement account as the treasury account of the spot FX transactions.
ii. Corporate customers shall sign Foreign Exchange Transaction Agreement with the tier-1 branches of ICBC, provide the Power of Attorney on Foreign Exchange Transaction, and fulfill the payment of margin deposit or other performance guarantee measures. Meanwhile, the customers shall agree to accept the Bank’s examination of its credit standing and performance capabilities, and provide relevant approvals and materials.
Personal and corporate customers that handle the spot FX transactions via the electronic banking channels of ICBC shall also perform the relevant formalities about registration with the Bank’s electronic banking system.

VI. Service Channel and Time
i. Personal customers may handle the spot FX transactions via the Bank’s outlets or electronic banking channels. The outlet service is generally available from Monday to Friday, and the specific service time shall be subject to the actual office hours of each outlet; the electronic banking service is available during 07:00~24:00 (Beijing time) on Monday, 00:00~24:00 (Beijing time) from Tuesday to Friday, and 00:00~4:00 (Beijing time) on Sunday.
ii. Corporate customers may handle the spot FX transactions via the Bank’s outlets or electronic banking channels, or through the telephone calls and facsimiles. The outlet service is generally available from Monday to Friday, and the specific service time shall be subject to the actual office hours of each outlet; the electronic banking service is available during 07:00~24:00 (Beijing time) on Monday, 00:00~24:00 (Beijing time) from Tuesday to Friday, and 00:00~4:00 (Beijing time) on Sunday.

VII. Operation Guide
1. Application for transaction: the customer shall submit the Power of Attorney on Foreign Exchange Transactions when handling the specific transactions. After completion of the transaction, the Bank will return the confirmed Power of Attorney on Foreign Exchange Transactions to the customers and timely handle the transaction settlement for the customers.
2. Cancellation and alternation of transaction: prior to completion of the entrusted transaction, the customer may alter or cancel the pending orders, and submit the Application for Alternation/Cancellation of Pending Foreign Exchange Orders. Once the entrusted transaction is completed, the customer shall not alter or cancel it.

Note: Information herein is for reference only. Please refer to announcements and regulations of local branches of ICBC for further details. ICBC retains the ultimate interpretation rights.


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