DBS is first Singapore bank approved by People's Bank of China for QFII Custodian Licence

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DBS is one step closer to providing custodial services to foreign investors of China's A-Share market

SINGAPORE, JULY 21 2003 - DBS Bank today announced that it has become the first Singapore bank to be granted approval for QFII Custodian Licence by China's central bank, People's Bank of China (PBOC).

The licence will enable DBS to offer custodian services to Qualified Foreign Institutional Investors (QFIIs) in China's A-share market.

QFII is a scheme that allows foreign investors to invest in China's domestic securities market. Under the scheme, foreign investors must apply for QFII licences and investment quotas through approved custodian banks. Apart from direct trading in the A-share market, QFII investors can buy and sell treasuries, convertible bonds and enterprise bonds listed in China's stock exchanges and other financial instruments approved by China Securities Regulatory Commission (CSRC).

DBS has met PBOC's stringent requirements for a QFII custodian bank, which include having professionals with proven track record in custody, ability to manage entire assets of the fund safely, qualifications to conduct foreign exchange and Renminbi business, and no material breach of foreign exchange regulations in the recent three years.

The QFII licence is another feather in the cap for DBS' award-winning custody services. The Bank has won awards and accolades from premier global financial magazines for the quality of its services. Awards include "Best Sub-Custodian 2003" in Singapore by "Global Finance" Magazine, "Best Custodian Bank 2002" in Singapore by "Global Investor" Magazine, "Top Rated Custody award for Singapore" by "Global Custodian" Magazine, and a 4-star rating by GSCS Benchmarks.

Frank Wong, Chairman of DBS Hong Kong and Greater China said: "Having a QFII Custodian Licence is consistent with our long term commitment to China. The QFII Licence will strengthen DBS' ability to secure more business not only in China's capital markets, but across the pan-Asian region. It will broaden our role in intermediating funds between investors and issuers. This is an area where DBS has well-developed expertise and we look forward to bringing together emerging companies in China and foreign investors."

DBS' network in China comprises branches in Shanghai, Beijing and Shenzhen; representative offices in Fuzhou and Tianjin and DBS Vickers and DBS Asia Capital representative offices in Shanghai. DBS' network currently has all the permitted branch and foreign exchange licences available to foreign banks. Besides full foreign currency products and services, DBS Shanghai Branch and Shenzhen Branch offer a full range of Renminbi products and services, including corporate lending, project financing, trade finance, current accounts, fixed deposits and remittances. DBS Shanghai and DBS Beijing are also authorised Approving Centres for capital accounts, providing foreign currency capital account conversion services to foreign enterprises. DBS has recently made an application to set up another branch in Guangzhou, Pearl River Delta, South China.

About DBS

DBS Bank is the largest bank in Singapore as measured by assets, with dominant positions in consumer banking, treasury and markets, securities brokerage, and equity and debt fund raising. With the merger of its wholly-owned Dao Heng Bank and DBS Kwong On Bank operations in Hong Kong, DBS Bank is now the fourth largest banking group in Hong Kong. Beyond the anchor markets of Singapore and Hong Kong, DBS Bank serves corporate, institutional and retail customers through its operations in Thailand, The Philippines, and Indonesia. In China, the bank has branches and representative offices in Shanghai, Beijing, Shenzhen, Fuzhou and Tianjin. The Bank's credit ratings are amongst the highest in the Asia-Pacific region. More information about DBS Group Holdings and DBS Bank can be obtained from our website www.dbs.com.