RMB International Settlement

J.P. Morgan Chase Bank (China) Co. Ltd, Shanghai Branch is authorized to provide Renminbi (RMB) cross-border trade settlement services to China-based corporate clients as a domestic settlement bank through its locally incorporated bank.

Program Background

• On April 8, 2009, the State Council announced plans to launch a trial phase for RMB International Trade Settlement.
• On July 2, 2009, the implementation details were promulgated by the People's Bank of China, thus formally launching the trial phase.
• On June 22, 2010, the Chinese government expanded the scope of the Program, removing many of the initial restrictions.

Program Scope

Corporate Participants:

In the initial launch of the trial phase, nearly 400 corporates in China were approved by the government to participate in the program. These cover a good representation of foreign invested companies, state-owned companies and privately owned companies.

Effective June 22, 2010, the corporate participants list has expanded. These government approved corporates are able to settle their merchandise exports in entitled with tax rebate, while any corporate in the 16 provinces and 4 municipalities can settle their merchandise imports, service trades and all current account transactions in RMB with counterparties globally.

Bank Participants:

• Domestic Agent Banks: Banks that provide RMB clearing services for Domestic Settlement Banks and Overseas Participating Banks.
• Domestic Settlement Banks: Banks in China that originate/receive payments in RMB to settle applicable trade transactions for eligible corporates.
• Overseas Participating Banks: Banks outside of China that originate/receive payments in RMB to settle applicable trade transactions for companies that trade with approved corporates based in China.

Eligible payment types:

L/C,DA/DP and open account.

Latest Developments

Trade flows between the People's Republic of China and the rest of the world continue to grow. With regulatory moves to promote the RMB as a trade settlement currency, are you geared to exploit a potential upsurge in cross border trade settlement in RMB?

Learn more:

• Information for overseas banks.
• Information for China-based corporates.
• Information for corporates dealing with counterparts in China.

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