3rd June 2011 marks the success of ABC Singapore Branch's first Cross-Border RMB Settlement Refinancing transaction. With the seamless cooperation from ABOC Zhejiang branch, ABC Singapore branch officially kick-starts this brand new business segment. On the same month, riding on the success of the maiden deal, ABC Singapore branch expands its Cross-Border RMB Settlement Refinancing business to two more mainland domestic branches. The introduction of Cross-Border RMB Settlement Refinancing business has not only provided a better alternative for ABOC China branches to obtain financing in RMB, therefore increasing their competitive edge to secure customers; the new business has also laid a strong foundation for an array of future Cross-Border RMB products going forward.
To push for the globalization of RMB currency, on July 2009, China's State Council has approved the Cross-Border RMB Settlement pilot project which will be pioneered by a total of four cities including Shanghai and Guangdong In 22nd June 2010, the pilot areas have increased to 20 provinces (including autonomous regions and municipalities). Cross-Border RMB Settlement bequeaths vast business opportunities for the Banks to tap on; it also greatly minimizes the foreign exchange risk corporate faces. ABOC Singapore branch's Cross-Border RMB Settlement Refinancing is a structured product of a combination of offshore refinancing, export financing and Cross-Border RMB Settlement. It is the solution to achieve cost efficient RMB financing for the corporate; and more importantly it plays a significant catalyst role in promoting China's Cross-Border RMB Settlement too.