Cross-border Direct Services

.Cross-border RMB Settlement Basic Service

RMB International Settlement

Applicable to: customers who have real overseas trade background and need to settle in RMB in order to avoid the exchange rate risk.

Features: this service provides you with high-efficient and swift L/C, collection and remittance settlement services.

II.   Comprehensive Cross-border RMB Settlement Service

1.Non-deliverable Forward (NDF)

Applicable to: customers who have associated enterprises abroad and hope to achieve the goal of exchange rate hedging and increment.

Features: when you apply for NDF, your overseas customer will fix the forward exchange rate with CGB overseas branch. When it is due, you only need to deliver and settle the difference between the fixed exchange rate and the actual exchange rate based on the total transaction amount. The currency for settlement is the convertible currency (generally USD). You do not need to deliver the principal (RMB) of NDF, so you can effectively to avoid the risk in exchange rate fluctuation.

2.Non-resident Account (NRA)

Applicable to: organizations registered abroad (including organizations in Hong Kong and Macao, Chinese overseas investment institutions and public organizations registered abroad, etc.).

Features: if you are an overseas organization, and hope to avoid the risk in exchange rate fluctuation among the main settlement currencies such as USD and EUR, you can choose to open a domestic RMB NRA with CGB. The account opening procedures are simple, and the account is easy to operate. The overseas payment and collection in RMB can be available directly based on instructions.

3.Cross-border RMB Import L/C + Overseas Back-to-back L/C

Applicable to: domestic import enterprises that have real trade background, purchase goods abroad through overseas associated enterprises, and hope to avoid the short-term external debt indicator limit.

Features: CGB’s domestic branch will open a cross-border RMB L/C in favor of your overseas associated enterprise, and CGB’s overseas branch will open a back-to-back L/C (in RMB or foreign currency) in favor of overseas actual supplier for your overseas associated enterprise based on the RMB L/C opened by the domestic branch, in order to finish the overseas procurement. This product can effectively avoid the short-term external debt indicator limit for you. Besides, the opening of back-to-back L/C in foreign currency (sub-L/C) will not occupy the credit line of your overseas associated enterprise in CGB’s overseas branch.

4.RMB Conversion on Demand and Cross-border Foreign Exchange Settlement

Applicable to: domestic enterprises that need to make payment in foreign currency externally (or receive income in foreign currency) and hope to reduce the costs for foreign exchange purchase and settlement.

Features: both RMB conversion on demand and cross-border foreign exchange settlement are to effectively reduce the costs for foreign exchange purchase and settlement by the difference in the foreign exchange rate at home and abroad (note: RMB conversion on demand requires that the domestic customer shall have associated enterprise abroad).

III. Trade Financing Financial Management and Increment Services

1.RMB Export Payment Agency

Applicable to: export enterprises that need RMB funds to support the raw materials procurement, production, stock up and transportation at home and aboard.

Features: provided that you bear the financing costs, other domestic and/or overseas agency banks designated by CGB will provide you with the RMB export financing service of less than 1 year (including 1 year) based on your application. This product can effectively avoid short-term external debt indicator limit for you, and provide you with more flexible and longer RMB export financing service at lower overseas financing costs.

2.RMB Import Payment Agency

Applicable to: domestic importers who hope to get financing funds at lower overseas costs to pay the overseas seller under cross-border trade settlement.

Features: provided that the importers bear the financing costs, other domestic and overseas agency banks designated by CGB will pay the RMB import funds to the overseas seller for you based on your application. This product can effectively avoid short-term external debt indicator limit for you, and provide you with more flexible and longer RMB import financing service at lower overseas financing costs.

3.Full Margin +Cross-border RMB Settlement +Overseas Foreign-currency Financing + Overseas NDF (Fuhuitong)

Applicable to: 1. Importers that have real trade background, apply for cross-border RMB payment services in the forms of remittance, document against acceptance (D/A), usance L/C and so on, and have associated company abroad.

Features: when you apply for external RMB payment service under the real trade background, you can pledge the full margin in RMB or the time deposit receipt as guarantee to apply to CGB for opening and accepting an RMB L/C, opening an RMB L/G for payment (including standby L/C) or RMB DA Avalisation (the guarantee bank guarantees and undertakes the joint responsibility for acceptor’s payment on due date). Meanwhile, your overseas payee applies to CGB’s overseas branch or other overseas banks for NDF and financing in foreign currency, and specifies to purchase foreign exchange for repayment with the externally paid funds in RMB under the RMB L/C, RMB L/G for payment or RMB DA Avalisation when the NDF expires. This product does not occupy your exposed credit line, and the overseas payee may get the additional return on funds.