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Cross-border RMB Account Financing

I. Description
The cross-border RMB account financing refers to the RMB financing services provided by ICBC in accordance with relevant provisions of the regulators on cross-border trade RMB management to meet the temporary cash needs in the cross-border RMB interbank clearing accounts opened by overseas participation banks in ICBC.

II. Target Customers
Overseas banks which have opened RMB interbank current account in RMB and have the need for RMB cash short-term adjustment.

III. Functional Features
1. Collaboration between domestic and overseas markets. The business will be conducted according to the financing needs of overseas participation banks with reference to the capital price and liquidity of domestic markets.
2. The term is relatively short. It is mainly used for the management of short-term liquidity, with a maximum period of one year.
3. Flexible trading elements. The transaction is conducted by way of inquiry, negotiated independently, and closed separately.

IV. ICBC Advantages
ICBC has strong financial strength, an extensive overseas branch network, professional trading teams, rich professional experience, advanced information system support and institutional guarantee, a 24-hour global trading mechanism and an intensive capital operating system.

V. Price
The trading price is determined by ICBC and interbank customers after negotiation with reference to SHIBOR.

VI. Service Channels and Hours
The cross-border RMB account financing can be conducted through a variety of methods such as transaction systems provided by intermediary agencies, telephone or mail. The interbank customers outside the Group conduct the trading with ICBC through the Reuters system in most cases. If a transaction is concluded by telephone or mail, the parties must sign a transaction confirmation after the transaction is completed. The contents of transaction confirmation include, but are not limited to, the names of trading parties, trading date, trading amount, trading period, lending rate and interest calculation method.
The trading hours are from 8:30 am Monday to 4:00 am Saturday (excluding statutory holidays).

VII. Operation Guide
The overseas participation bank customers shall first reached an initial intention with ICBC. After ICBC completed the business comprehensive review, the two parties will conduct cross-border RMB account financing transactions.

VIII. Risk Prompt
The cross-border RMB account financing shall be so conducted to meet regulatory requirements. The trading involves various risks such as liquidity risk and operational risk. The level of interest rate is affected by many factors such as macroeconomic policies and changes in the operation of the money market. Customers should fully recognize the risks that this business may involve and well manage the liquidity.

Note: The information given on this page is for reference only. See the announcements and rules of local outlets for details.

Global Market