Our bank has a professional foreign exchange & derivatives trading and sales team, which can provide customized treasury solutions at competitive prices, ready to help hedge your risks.
FX spot transactions refer to the foreign exchange business in which the bank and the client agree to exchange and settle two currencies on the same day (or within two trading days) after the transaction is done.
1. Product Feature
Lock in FX Cost, Risk mitigation, meet client FX requirements. All FX Sale/ Purchase (CNY against other currencies) must comply with regulatory policies with actual trade/ business background.
2. Currencies
RMB, USD, PHP, HKD, EUR, JPY, GBP, AUD, CAD, SGD
3. Tenor
T+0 up to T+2
4. Risk Alert
Subject to Market risk. Once rate is locked in, client loses the opportunity to deal better prices when market moves in their favour.
5. Our Core Advantage
a. Competitive and real-time prices
b. Professional sales team providing suitable solutions customized to client needs.
Forward FX contracts refer to an over-the-counter transaction for delayed delivery of a foreign currency in which two parties agree to exchange two currencies at a specified future date, amount and exchange rate.
1. Product Feature
It is used by market participants to set exchange rates for a future date to lock in costs of goods/expenditures. Forward exchange contracts commonly used to hedge foreign currency risks. All FX Sale/ Purchase (CNY against other currencies) must comply with regulatory policies with actual trade/ business background.
2. Currency
RMB, USD, PHP, HKD, EUR, JPY, GBP, AUD, CAD, SGD
3. Tenor
From T+3 up to 1 year. Settlement date adjusted to client requirements.
4. Risk Alert
Subject to Market risk. Once rate is locked in, client loses the opportunity to deal better prices when market moves in their favour.
5. Our Core Advantage
a.Competitive and real-time prices
b.Professional sales team providing suitable solutions customized to client needs.
FX Swap refers to an agreement involving an initial exchange of two currencies, usually at the prevailing spot rate (near leg), and a simultaneous commitment to reverse the exchange of the same two currencies at a future date at a rate agreed on deal date (far leg). Since these two legs are executed simultaneously for the same quantity, they therefore offset each other in terms of net FX position.
1. Product Feature
Customers can hedge gaps caused by different maturities dates of different currencies dealt with and avoid foreign currency risks. The main difference with FX Forward transactions is an FX Swap is composed of two opposite legs which nets out the FX position. All FX Sale/ Purchase (CNY against other currencies) must comply with regulatory policies with actual trade/ business background.
2. Currency
CNY, USD, HKD, EUR, JPY, GBP, AUD
3. Tenor
Tenor of up to 1 year; settlement dates adjusted to client requirements.
4. Risk Alert
Subject to Market risk. Once rate is locked in, client loses the opportunity to deal better prices when market moves in their favour.
5. Our Core Advantage
a.Competitive and real-time prices
b.Professional sales team providing suitable solutions customized to client needs.
FX Option refers a contract that gives the buyer the right, but not the obligation, to buy or sell a certain currency at a specified exchange rate on or before a specified date. For this right, a premium is paid to the seller.
1. Product Feature
FX options are one of the most common ways for corporations, individuals or financial institutions to hedge against adverse movements in exchange rates. Options can be customized and structured into combinations applicable to each customer’s own needs and risk preferences. All FX Sale/ Purchase (CNY against other currencies) must comply with regulatory policies with actual trade/ business background.
2. Currency
CNY, USD, HKD, EUR, JPY, AUD, PHP
3. Tenor
Tenor of up to 1 year; settlement date adjusted to client requirements.
4. Risk Alert
The option Seller receives the option premium paid by the option Buyer; and if the option buyer chooses to exercise its right, Seller has the obligation to deliver the agreed foreign exchange to the option Buyer.
If client is the option Buyer, client pays the option premium to the Seller. When the strike price of the option is in buyer’s favor, client can choose to exercise its right.
5. Our Core Advantage
a.Competitive and real-time prices
b.Professional sales team providing suitable solutions customized to client needs.
An interest rate swap is a forward contract in which one stream of future interest payments is exchanged for another based on a fixed notional principal amount within a specified period of time. Interest rate swaps usually involve the exchange of a fixed interest rate for a floating rate, or vice versa, to reduce or increase exposure to fluctuations in interest rates or to obtain a marginally lower interest rate than would have been possible without the swap. No settlement of principal needed on the interest rate swap per se.
1. Product Feature
For hedging of interest rate risk on deposits or loans. Commonly used for locking in interest rates to control interest expenses.
2. Currency
USD
3. Tenor
Tenor of up to 5 years.
4. Risk Alert
Subject to Market risk. Once rate is locked in, client loses the opportunity to deal better prices when market moves in their favour.
5. Our Core Advantage
a.Competitive and real-time prices
b.Professional sales team providing suitable solutions customized to client needs.
Cross-currency swaps are agreements between two parties to exchange interest payments and principal denominated in two different currencies. In a cross-currency swap, interest payments and principal in one currency are exchanged for principal and interest payments in a different currency. Interest payments are exchanged at fixed intervals during the life of the agreement. Cross-currency swaps are highly customizable and can include variable, fixed interest rates, or both. Customers hedge for their exchange rate and interest rate risk using this product.
1. Product Feature
For hedging of interest rate risk and foreign exchange risk. Commonly used to borrow a currency with lower financing costs and swap it to the required currency that was more expensive to borrow.
2. Currency
USDCNY, USDJPY, EURUSD
3. Tenor
Tenor of up to 5 years.
4. Risk Alert
Subject to Market risks (FX and interest rate risk). Once rate is locked in, client loses the opportunity to deal better prices when market moves in their favour.
5. Our Core Advantage
a.Competitive and real-time prices
b.Professional sales team providing suitable solutions customized to client needs.
Providing you with high-quality and safe investment solutions through a comprehensive portfolio of multi-currency, multi-term, and multi-market portfolio management services; effectively taking into account your liquidity, market, and credit risk in investments.
Interest rate securities mainly refer to government bonds, local government bonds, policy financial bonds and central bank bills, etc.
A credit bond is a bond issued by a principal other than the government that has agreed on a specific principal and interest rate. These include corporate bonds, short-term financing bills, medium-term notes, split-transaction convertible bonds, asset-backed securities, and subordinated debts, etc.
The Bank can participate in trust plan products formulated by investment trust companies for its customers, including single trusts and collective trust products. Trust products must meet our standards and risk mitigation qualifications. The term "trust investment" as mentioned refers to wherein in compliance with rules and regulations, the Bank acts as the principal, entrusting funds to the trust company, and participating in an investment.
The bank’s financial markets team actively participates in the inter-bank money market, and provides short-term and medium-term loan and lending services to banks and non-bank financial institutions, effectively balancing between risk management and profitability.
Interbank NCDs refer to special time deposit certificates issued by the financial institutions in the interbank market. The bank is allowed to issue and/or invest in the interbank NCD market according requirements as a source of diversified assets and liabilities of short- to medium-term funds.
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