DBS TO OFFER CROSS-BORDER YUAN TRADE SETTLEMENT
SERVICE IN KEY ASIA MARKETS
***
Commitment to intermediating trade flows underlined by plans to open Dongguan branch; launch of cross-border yuan settlement service in Singapore, Hong Kong
SINGAPORE, HONG KONG, CHINA, 4 August 2009 - DBS Bank said today that in line with its commitment to be a leading intermediary of trade flows in Asia, it is embarking on a four-pronged approach to help customers in its key markets of Singapore, Hong Kong and China take advantage of new rules allowing the cross-border settlement of trades in yuan.
This move by China to allow yuan settlement of trades will benefit companies in Asia with RMB payables and receivables, by helping them reduce their foreign exchange exposure.
To allow its mainland China customers to fully benefit from the new cross-border yuan settlement rules, DBS China will be applying to be an onshore agent bank under the pilot scheme. With this status, it will be able to directly help domestic Chinese enterprises settle their overseas trades in yuan.
In addition, DBS China will be opening a branch in Dongguan - China 's third-largest exporting region - in August. The location of the branch, DBS China 's eighth, in Dongguan - one of five Chinese cities under the scheme - will offer greater convenience and accessibility to customers wanting to reduce their foreign exchange volatility and exposure through DBS.
Thirdly, DBS has started to offer the yuan settlement service to customers in Hong Kong - China 's third-largest trading partner - with the completion of its first pilot transaction on 3 August 2009. Finally, in Singapore, DBS is working towards rolling out the service to corporate and SME clients very soon.
Said Jeanette Wong, Head of Institutional Banking at DBS, "As a leading Asia bank, we intend to fully leverage our growing presence in China, and our extensive footprint in Singapore and Hong Kong, to intermediate growing intra-regional trade flows. With the emergence of China as an economic powerhouse, many of our corporate customers are increasingly trading with it. At a time of market volatility, we are pleased to have a platform to help our customers in Hong Kong, and very shortly Singapore, settle their trades in yuan, so better managing their foreign exchange risks."
Added Teresa Lin, Vice-Chairman and CEO of DBS China, "DBS has been actively expanding our footprint and suite of services in China to serve the needs of customers. The opening of the Dongguan branch in August, coupled with a branch network which spans the major Chinese cities, will enable us to offer greater convenience and accessibility to customers seeking to settle their yuan trades through us."
Currently, DBS China has seven branches in Beijing, Shanghai, Guangzhou, Shenzhen, Suzhou, Tianjin and Nanning; and six sub-branches in Beijing, Shanghai, Suzhou and Guangzhou.
About DBS
DBS is one of the largest financial services groups in Asia with operations in 16 markets. Headquartered in Singapore, DBS is a well-capitalised bank with "AA-" and "Aa1" credit ratings that are among the highest in the Asia-Pacific region.
As a bank that specialises in Asia, DBS leverages its deep understanding of the region, local culture and insights to serve and build lasting relationships with its clients. DBS provides the full range of services in corporate, SME, consumer and wholesale banking activities across Asia and the Middle East. The bank is committed to expanding its pan-Asia franchise by leveraging its growing presence in mainland China, Hong Kong and Taiwan to intermediate the increasing trade and investment flows between these markets. Likewise, DBS is focused on extending its end-to-end services to facilitate capital within fast-growing countries in Indonesia and India.
DBS acknowledges the passion, commitment and can-do spirit in each of its 14,000 staff, representing over 30 nationalities. For more information, please visit www.dbs.com.