Renminbi Clearing Bank

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1 RENMINBI SERVICES Renminbi Clearing Bank ASX Limited-Bank of China Limited RMB Settlement Service Joining the ASX-BOC Renminbi Settlement Service RQFII

2 Renminbi Clearing Bank Bank of China Sydney Branch ( BOCS ) was appointed the official clearing bank for Renminbi ( RMB ) in Australia by the Chinese Central Bank, the People s Bank of China ( PBOC ) on 18 th November An official RMB clearing bank is given exclusive direct access to China s onshore RMB and foreign exchange market by the PBOC. This exclusive right will enable BOCS to provide liquidity in the Australian market. As the official RMB Clearing Bank in Australia, BOCS is able to clear RMB transactions to achieve efficiency. Benefits to the Australian Market: Appointment of a clearing bank will help provide and manage the liquidity in Australia; Improve the efficiency of cross-border RMB transactions by reducing payment delays; Encourage development of local RMB products to be offered by local financial institutions to facilitate deposit growth; Liquidity support by Bank of China to build confidence in the local market; Propel and establish Sydney as an Offshore RMB Hub.

3 ASX Limited-Bank of China Limited ( ASX-BOC ) Renminbi Settlement Service The Bank of China and ASX Limited jointly developed RMB Settlement Service System utilizing ASX s Austraclear settlement infrastructure. It is one of the most established financial networks in Australia. It allows customers to carry out high value electronic cash transfers in RMB in near real time. The ASX-BOC Renminbi Settlement Service will deliver the following benefits to its customers: Increased accessibility, allowing Australian companies to efficiently use RMB as a settlement currency in their cross-border transactions with trading and investment partners in China. Lower costs and risk, allowing Australian companies trading with China to pay and receive RMB on a near real time basis, thereby reducing settlement risk and the cost of conversion. New growth opportunities, by expanding the scope and global connectivity of Australia s financial markets. In addition, this initiative will allow for a range of investment products, including RMB denominated bonds and structured instruments, to be developed over time.

4 Joining the ASX-BOC Renminbi Settlement Service Existing Austraclear customers can join the Renminbi Settlement Service either by opening an RMB account at the Bank of China or by asking their Austraclear participating bank to do so. Other customers can join the Renminbi Settlement Service by: becoming an Austraclear participant and opening an RMB account at the Bank of China; or, becoming an Austraclear participant and asking their Austraclear participating bank to open an RMB account at the Bank of China; or, becoming the customer of an Austraclear participating bank with an RMB account at the Bank of China. Contacts: General Enquiries Renminbi Clearing Centre Bank of China Limited T: (02) E: Renminbi Account John Chan Senior RMB Business Specialist T: (02) E:

5 RQFII Renminbi Qualified Foreign Institutional Investor Launched in December 2011 Quota RMB50 billion quota granted by PBOC to Australian investors Purpose Allow offshore RMB funds to flow back to the Chinese capital and interbank market Regulatory agency CSRC China Securities Regulatory Commission o To approve RQFII status by granting RQFII licenses SAFE State Administration of Foreign Exchange o To grant RQFII quota to RQFII products o To supervise RQFII money flows PBOC People s Bank of China o To approve access to Interbank Bond market o To supervise RMB A/Cs and RQFII money flows Investment Scope* Listed equities, bonds or funds (primary + secondary markets) Fixed Income instrument in Interbank-bond Market (secondary market only) OTC funds issued by domestic funds companies Stock Index Futures Cash in savings accounts Application Procedure:

6 *Please contact BOC for detailed information Contacts: Renminbi Clearing Centre Bank of China Limited T: (02) E: