Contents. About RMB...2. About Bank of China...3. About Bank of China Johannesburg Branch...4

Transcription

1 RMB BUSINESS

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3 Contents About RMB...2 About Bank of China...3 About Bank of China Johannesburg Branch...4 The Evolution of Bank of China Johannesburg Branch RMB Business...5 Overseas RMB Personal Business...6 Overseas RMB Personal Business Q & A...9 Overseas RMB Corporate Finance Business...11 Overseas RMB Corporate Financing Business Q & A...16

4 About RMB At present, the Renminbi (RMB, also known as Chinese Yuan ) has become the most effective currency in hedging exchange rate risk: since China s announcement in rolling out foreign exchange reform in May 2005 until now, the RMB has already appreciated over 20% in value, and the trend of RMB appreciation is continuing. Bank of China Johannesburg Branch ( BOC Johannesburg ) has been comprehensively unfolding RMB related businesses in South Africa and other African countries and has become the leader of RMB business in the local fi nancial market. Choosing Bank of China and choosing RMB business will smooth your path to wealth accumulation. 2

5 About Bank of China Bank of China was established in February 1912, with over one hundred years of history behind it, and has become the most internationalised and diversifi ed bank in China. Bank of China provides comprehensive fi nancial services and offshore RMB business to customers in mainland China, Hong Kong, Macau and 31 countries (and various neighbouring countries surrounding them) around the world. Bank of China Hong Kong has been appointed the sole clearing bank for offshore RMB business by People s Bank of China ( PBOC Chinese Central Bank). China Investment Management Ltd, conduct direct investment and investment management through its 100% owned subsidiaries Bank of China Group Investment. Conduct aircraft leasing business through Bank of China Aviation. By core capital, in July 2011, Bank of China is ranked ninth by British Magazine The Bank in The top 1000 global bank survey. Bank of China s core business is commercial banking and we also: Conduct investment banking through its 100% owned institutions Bank of China International Holding Group. Conduct insurance business through its 100% owned subsidiaries Bank of China Group Insurance & its subsidiaries and joint ventures. Conduct fund management business through Bank of 3

6 About Bank of China Johannesburg Branch Bank of China Johannesburg Branch ( the Bank or BOC Johannesburg ) opened for business on 06 October The Bank abides by the laws and regulations of South Africa. The bank strives to provide services to facilitate economic & trade development as well as fi nancial activities between China, South Africa and other African countries. The Bank s current business physical address is: 14th Floor, Alice Lane Towers, 15 Alice Lane, Sandton, Johannesburg, South Africa. 4

7 The Evolution of Bank of China Johannesburg Branch RMB Business The fi rst bank - Bank of China Johannesburg offers opening RMB clearing accounts and provides clearing services to banks in South Africa. The fi rst US Dollar to RMB foreign exchange spot transaction - Bank of China Johannesburg conducted between banks in South Africa. The fi rst Rand to RMB foreign exchange spot transaction - Bank of China Johannesburg processed between banks in South Africa. The fi rst RMB Bulk Salary Remittance business - Bank of China Johannesburg processed for a South African Chinese client. The fi rst bank - Bank of China Johannesburg did RMB investments via mainland China Bond Market transactions in the African market. The fi rst bank - Bank of China Johannesburg received approval from the South African Reserve Bank for Cross Border RMB fi nance business under Trade Finance services in the African market. The First Bank- provided bilateral loan in South Africa. At present, Bank of China Johannesburg comprehensively rolled out all fi nancial products and services of a commercial bank under RMB business. Products and services available to other currencies also became applicable to RMB. So far, Bank of China Johannesburg has started to provide RMB clearing and settlement services between banks, corporate and individual clients in other African countries. In September 2011, the Bank established the RMB Business Department, which specialises in providing RMB business consultation, advisory and services. In 2011, the Bank achieved RMB business volume increments of up to more than 20 times compared with that of the previous year, which is testimony to the fact that there are vast opportunities for China and South Africa s development of economic trade cooperation and demands for RMB business. The Bank has become the market leader in RMB business in the entire African market. 5

8 Overseas RMB Personal Business RMB Accounts For our new clients, simply complete an application form for opening an account, giving you access to accounts with different currencies, including RMB, Rand and other foreign currencies as well as internet banking service. These accounts will also allow you the benefi t of enjoying our various products and services. For our existing clients, simply complete an application for opening an additional RMB account. You can easily start your RMB business today! Requirements for Opening Accounts South Africa Residents: South African green bar-coded identity document or a valid passport with proof of permanent residence status Proof of South African residential address, such as water and electricity bill or lease agreement Income tax document issued by SARS (if applicable) Foreign National who resides in South Africa: Valid passport and visa (temporary residence permits including work permit and study permit) Proof of South African residential address, such as water and electricity bill or rental agreement Source of funds (e.g. payslip, employment contract, SARS income tax return or 3 months bank statements) Non-resident: Valid passport Proof of residential address (i.e. Chinese identity document, water and electricity bill or lease agreement, etc) Temporary residence permit Note: the Bank may require additional information for the account opening purpose. 6

9 RMB Deposit Your RMB funds can be placed in a current or time deposit account with an attractive interest rate. It can also be utilised as collateral deposit for your needs such as buying bonds or other forms of fi nancing. Current Account It allows you to access your funds easily for daily deposits and withdrawals while earning interest income on the balance. Time deposit Account This is a fi xed period investment. Generally, the longer the period invested the higher the interest rate. The periods of time deposit are: 1 month, 3 months, 6 months and 1 year. Partial or full amount withdrawal before the maturity date is permitted, but the interest will be calculated at the savings deposit rate quoted on the day of withdrawal. RMB Financial Planning We provide various RMB Financial Planning products. RMB Loan Please consult with our Branch personnel for details of different product categories, such as Home Loans, Pledged Deposit Loans, Certifi cates of Deposit as security for loans or revolving credit. RMB Exchange We provide exchange services between RMB and various other currencies such as USD, Rand and many more; which may assist you with hedging potential risk due to currency exchange rate fl uctuations. RMB Remittance We are connected to the RMB clearing system and are linked to the RMB remittance network in mainland China, which is linked 5 continents globally and offers you a very convenient and effi cient remittance solution. The benefi ciary receives the RMB directly and no foreign currency conversions are required. The process has been simplifi ed for your benefi t and you can either send RMB via our RMB Individual Remittance Service or RMB Pre- Settlement Service. RMB Bulk Salary Remittance This applies to Chinese companies intend to pay salaries to their expatriate employees overseas. This service ensures that the employees receive their salary in RMB safely and timeously. The company may choose to pay salaries to their 7

10 staff members RMB accounts opened at our branch and the staff may, according to their needs, either remit the fund or retain it with us; or alternatively the company may directly remit the RMB salary to the employees RMB accounts in China. BOC Expresspay Card The BOC Expresspay Card is a pre-loaded RMB card that allows you cash-free convenience when travelling abroad. It is sanctioned by China s UnionPay System, and can be used at any merchant that accepts UnionPay cards. There are 4 different types of cards available, with denomination of 500, 1000, 2000, BOC Debit Card The BOC Debit Card offers you ATM cash withdrawals, changing of passwords, balance inquiries, and transactions on POS machines. It also can be accepted at any merchants that accepts UnionPay cards. Transaction limits are linked to your available balance on the account with us. BOCNET Internet Banking Service Full internet banking services are available to all customers. Inquiries, transfers, remittances and time deposits are just one step away. There is no need to process your transactions over the counter and the fees are more cost effective than normal counter services. Remarks: According to South Africa s Foreign Exchange Ruling, some services do not apply to South African residents or companies; South African residents remittance amounts shall be in line with the annual limitations applicable to the South African Reserve Bank Foreign Exchange Rulings. 8

11 Overseas RMB Personal Business Q & A 1. Is there a minimum balance requirement for opening a RMB deposit account? Yes. The minimum balance requirement for RMB accounts is the same as our Rand accounts. The minimum balance for RMB Savings accounts is the RMB equivalent to ZAR Can I apply for RMB cheques? No. We do not offer cheque services at present. 3. How can I fund my RMB account? Customers can fund their RMB accounts by way of incoming RMB remittances or purchasing RMB via exchange of other currencies within our branch. Currently, we do not accept RMB cash deposits. 4. Can I withdraw RMB cash from my RMB account? No. We do not provide RMB cash deposit or withdrawal services at present. 5. What is the customer service hotline? Banking Department Business Hours: 09H00 15H30 South African Time Telephone: / Fax: banking@boc.co.za RMB Business Department Telephone: / Fax: rmb@boc.co.za 6. Can I buy or sell RMB from/to BOC Johannesburg? Yes, you can exchange ZAR/USD to RMB or exchange RMB to ZAR/USD at our bank. 7. Is there a limit to the amount that I can exchange? No, but our bank reserves the right to impose a limit on RMB exchange according to daily market conditions. 9

12 8. Where can I get a quote of the RMB exchange rate? Customers can obtain quotes by contacting our customer service hotline. The RMB exchange rate quote is based on the current bank s buying or selling rate. 9. Is there a restriction on individual remittances of RMB to China? Remittances to China are regulated by the Chinese Foreign Exchange Rulings. Currently, there are two ways to remit RMB to China: RMB Individual Remittances and RMB Pre-settlement Remittances. RMB Individual Remittances The remitter and the benefi ciary has to be the same person; Daily limit of remittances: RMB80,000.00; The Bank will automatically split the remittance and remit in subsequent days, should the amount be greater than RMB80,000.00; There is no annual limitation on remittances or receiving of funds. RMB Pre-settlement Remittances The Remitter may remit funds to his/her own account or other benefi ciaries in China; The Benefi ciary s Chinese identity number must be provided; The Benefi ciary may not receive more than US$50, (or equivalent thereof) per person per year. 10. Can I remit RMB to accounts outside China such as, Hong Kong, Macau, US, and Canada? Yes, but only if the benefi ciary has an overseas RMB account (outside China). Overseas RMB remittance is not restricted by Chinese Foreign Exchange Rulings. 11. Can I or my relatives in China remit RMB into my RMB account at the Johannesburg branch? The bank of the remitter in China will be responsible for approving the RMB remittance application. If the funds are remitted to South Africa and the benefi ciary has opened a RMB account with us, we can deposit the fund into your RMB account. You should consult your domestic branch in China for the requirements of remitting RMB to foreign countries. 12. Am I required to open a RMB account at your branch in order to use your RMB remittance service? Yes. The remitter must have a RMB account at our branch. 10

13 Overseas RMB Corporate Finance Business RMB Corporate Deposit RMB deposits with Bank of China Johannesburg are available to foreign entities. It is possible for the customers to deposit RMB Corporate Demand Deposits and Time Deposits through a non-resident RMB account. The periods of Time Deposits are: 1 month, 3 months, 6 months and 12 months. When the deposit is withdrawn upon maturity, the interest shall be calculated in accordance with the interest rate agreed to on the deposit date. Should the customers wish to reinvest the funds, new interest rates will be negotiated. The Bank can provide favourable interest rates to the customers for larger deposits. RMB Corporate Financing Our trade professionals can assist and advise you with regards to all your RMB trade requirements. With the assistance of Bank of China s global network and correspondent banking relationships, we can help you take your business to new heights. We offer the full range of RMB trade related services, which includes but are not limited to: A. INTERNATIONAL TRADE SETTLEMENT Export Settlement Exporters outside China (RMB Payment from China) An Overseas Enterprise Exporting Goods to A PRC Enterprise 11

14 RMB Letter of Credit Letter of Credit ( L/C ) Advising A series of services provided to the exporter by us upon receipt of L/C in RMB and subsequent amendments from the issuing bank, such as advising L/C, checking L/C terms and identifying problems (if any). Our global network provides strong support for us to issue L/Cs to you effi ciently and safely. Negotiation A series of services will be provided to you by our Branch upon your presentation of documents in RMB under L/C to us, including scrutiny of documents, sending the documents by courier service to the issuing bank, claiming reimbursement, tracing payment, and arranging settlement, etc. Settlement The issuing bank will make payment within 5 working days after receiving the relevant documents and after having properly verifi ed them. Upon receipt of funds we will credit your RMB account, thereafter you can exchange this RMB into any currency of your choice at a nominal fee. RMB Outward Document Collections As entrusted by the exporter, BOC Johannesburg on the basis of the fi nancial and commercial documents submitted by the exporter, collects payment from the importer via its foreign correspondent banks or sister-branches; including D/P (documents against payment) and D/A (documents against acceptance). RMB Inward Remittance This is the most convenient and quickest export settlement instrument. We will credit your account with us upon receipt of payment instruction from the overseas remitting bank. Telegraphic transfer (T/T) is most commonly used. Bank of China Hong Kong was appointed as the sole RMB clearing bank that can ensure the quickest and safest trade settlement. Import Settlement Importers outside China (RMB Payment to China) An Overseas Enterprise Importing Goods from A PRC Enterprise 12

15 RMB Letter of Credit ( L/C ) Issuing BOC Johannesburg issues a L/C in RMB on the importer s account and undertake to pay the foreign exporter the value of the goods, provided the required documents are submitted and the terms are complied with. With a L/C being issued by our bank, you can improve your negotiation status you will be able to benefi t more advantageous terms. Payment After having received compliant documents under Sight L/C, we will pay in RMB on your behalf, or for discrepant documents; upon your acceptance of the discrepancies the payment can be made on your behalf in order for you to obtain the necessary documents. Acceptance With documents under Usance L/C, you can accept the bill to pay at any future date which allows you to obtain the document fi rst and payment will be made at a later stage as agreed upon in the L/C. RMB Inward Document collections Upon receipt of the instructions from the foreign correspondent bank, BOC Johannesburg delivers the relevant commercial documents to you and collects the payment from you in RMB and then effect payment on your behalf. There are two types of inward collections. Under D/P terms, import documents are released to you against your payment (also known as Sight ). Under D/A terms, documents are released to you against your acceptance (also known as Usance ). RMB Outward Remittance Upon receipt of the importer s instruction we remit the specifi ed amount to the benefi ciary. The instruments of remittance include telegraphic transfer (TT), mail transfer (MT), and draft transfer (DT), of which telegraphic transfer is the most commonly used. B. TRADE FINANCE RMB Bills Purchase With complied documents presented under Sight L/C, we can fi nance you in RMB at a competitive rate. RMB Bills Discounting For Usance L/C, either the complied documents presented or the accepted discrepant bill can be financed in RMB at a competitive rate. 13

16 RMB Factoring We provide fi nancing to you based on your cession of the Debtors Book. As the fi nancier, we offer you our factoring services including: credit control; the keeping of proper accounting records; rendering statements at regular intervals; taking such steps as the fi nancier shall at its sole discretion consider necessary for the collecting of debts; and rendering to the supplier at regular intervals an age analysis of all debts outstanding from time to time. RMB Guarantee BOC Johannesburg Guarantee Services includes various types of guarantees, including but not limited to: bid guarantee, advance payment guarantee, performance guarantee, retention guarantee, and payment guarantee. These guarantees shall be issued against the guarantee facility provided by us or the counter guarantee in favour of us issued by Bank of China Group or any other approved fi nancial institutions. RMB Supply Chain Credit Facility (Bonded Warehouse) This is a short term trade fi nance used by exporters. Goods and money fl ow will be controlled by the Bank simultaneously. The whole process starts from either the Warehouse or Factory/Mine until goods are shipped to the destination. Corporate Financing RMB General Banking Facility ( GBF ) (May include: L/C Credit Facility, FEC Credit Facility, Bill Discount Credit Facility) The RMB General Banking Facility refers to a fl exible, convenient and revolving product provided by Bank of China. With fl exible arrangements, total GBF can be further divided into limits for different products such as loans, L/C, export bill purchases, letters of guarantee, bank acceptance drafts, and acceptances of draft discounting. GBF is applicable in all credit extension services with a term within one year (inclusive), which can be extended to over one year for letters of guarantee of tender, performance, advance payments, customs and marine under the item of letters of guarantee by mutual agreement. RMB Global Credit Line Global credit line is an extension of the application scope of traditional credit line products, and its major function is to fulfi l the fi nancing needs of enterprises overseas affi liates. It takes advantages of Bank of China s far-ranging overseas branch networks to provide enterprises overseas affi liates an overall fi nancing package. It is a product tailored for large enterprise group customers dedicated to overseas development. Because of their high prestige, strong operating capacity, sound funds and technology strength, these customers are the bank s key target customers. With the bank s help, the corporate headquarters conduct centralized control over their overseas affi liates fi nancing and thus enhance management of overseas operational risks. 14

17 RMB Syndicated/Syndication loan Syndicated loan is a form of loan business in which two or more lenders jointly provide fi nancial assistance to one or more borrowers on the same terms and conditions specifi ed in the loan agreement. Usually, one bank is appointed as the agency bank to manage the loan business on behalf of the syndicate members. The same loan syndications can include a variety of facilities such as fi xed-term loans, revolving loans and standby L/ Cs in line with the requirements of the borrower. In addition, the borrower can choose between RMB or any other currency of choice. Cross-border RMB FDI and ODI For cross-border RMB Foreign Direct Investment ( FDI ) into mainland China or Outward Direct Investment ( ODI ) from mainland China, our Bank can meet the customer s RMB facility requirements subject to the rules and regulations of both the South African Reserve Bank and the People s Bank of China. Overseas RMB Bonds Issuance Our bank can assist companies to issue RMB bonds in Hong Kong Market through Bank of China (Hong Kong) Limited / Bank of China International Limited in order to raise funding. Companies can also benefi t from issuing RMB Bonds as the cost of funding is relatively low. Advantages of RMB 1. Secured FX rate As the offi cial currency for People s Republic of China (which is also known as The World Factory ), the cost can be easily covered by RMB Settlement. 2. A Stronger RMB, daily The RMB has appreciated almost 30% since the Foreign Exchange Reform in May 2005, and is expected to continue in years to come. 3. Great Prospects RMB settlement has become the trend of the 21st century. The utilisation of RMB as a means of international settlement will become essential for global traders, and will ensure much more lucrative business opportunities for all participants. 15

18 Overseas RMB Corporate Financing Business Q & A POLICY 1. Which areas in China are authorized to do RMB Settlements? From the 23rd of August 2011, all Provinces and areas are authorized to do RMB settlements. 2. Which overseas areas are authorized to do RMB Settlements? From the 22nd of June 2010, all countries and areas are authorized to do RMB settlements. However, the sole mandate overseas fi nancial institution is Bank of China, please fi rst confi rm with your bank if they deal with RMB. 3. Can any bank in China do RMB Settlements? No, only certain banks can do RMB Settlements. Bank of China is the leading bank for RMB Settlements. 4. Are all companies in China authorized to do RMB Settlement? For export to China, no authorization is needed for your partner in China to do RMB Settlements. For import from China, authorization is needed from the Chinese Exchange Control Authorities. 5. What are the rules of the RMB settlements business set by the People s Bank of China and SA Regulators? SA Regulators do not have any specifi c rule for this business yet. For the related regulations about RMB settlements, please logon to the following websites: People s Bank of China: South Africa Reserve Bank: RMB SPOT EXCHANGE 1. Are business customers required to have an international trading background? Yes. 2. Can the bank provide same day settlement? No, the rate must be booked before 10:00 AM for valuation and will be settled earliest by the next working day. 3. How can a business customer inquire about the exchange rate? The customer can make the inquiry by contacting the Trade fi nance department. 16

19 Trade Finance Department Business Hours: 09:00 15:30 South African Time Telephone: / Fax: trade@boc.co.za TRADE FINANCE 1. What types of trade finance services does BOC Johannesburg bank offer? We offer Letters of Credit, Supply Chain Financing, Export Bill Purchases, Export Discounting, Import Factoring and Invoice Discounting, and any other supplementary products that have been agreed upon by both parties. 2. What are the target customers of trade financing? The target customers of trade fi nancing include all Chinese-funded enterprises in SA and SA local enterprises. However, our trade fi nancing and settlement services are not limited to China and SA. CORPORATE FINANCING 1. If a company applies for an RMB credit facility, is it compulsory to obtain the South African Reserve Bank s ( SARB ) approval? Yes, with the exception of short term trade fi nance facilities. 2. What are the target customers of RMB corporate financing? Companies not registered in South Africa; Companies registered in South Africa: Trading companies; Foreign Companies investing in South Africa (e.g. from China); Companies investing in China 3. Do corporate customers need special approval when they apply for an RMB credit facility for FDI or ODI purposes? Yes. According to SARB s regulations, companies registered in South Africa intending to invest in mainland China through capital injection or shareholder s loan, the Bank will need SARB s approval before providing credit facilities. Investments should not exceed R500 million (or the equivalent thereof) per company per calendar year, otherwise special approval must be obtained from the SARB. For more information, please logon to the following websites: People s Bank of China: / South Africa Reserve Bank: 17

20 4. How is the interest rate determined? RMB Interest rate is very competitive and link to SHIBOR and HIBOR. For more details, please contact our Business Development Department or Corporate Finance Department or RMB Business Department: Business Development Department Business Hours: 09H00 15H30 South African Time Telephone: / Fax: BDD@boc.co.za Corporate Finance Department Telephone: / Fax: cfdrmb@boc.co.za RMB Business Department Telephone: / Fax: rmb@boc.co.za 18

21 Expertise in RMB Businesses Diverse RMB Services and Products World Wide RMB Service Network A Gateway to China Terms and conditions apply. All rights reserved by Bank of China Johannesburg Branch

22 RMB BUSINESS