Clearstream opens three new offshore RMB Cash Correspondent Bank accounts

Clearstream opens three new offshore RMB Cash Correspondent Bank accounts in Luxembourg, Singapore and Frankfurt. Move will give customers more options and flexibility in managing offshore RMB liquidity. Clearstream now offers five offshore RMB accounts in four leading financial centres.

March 19, 2015

clearstreamClearstream opens three new offshore RMB Cash Correspondent Bank accounts in Luxembourg, Singapore and Frankfurt. Move will give customers more options and flexibility in managing offshore RMB liquidity. Clearstream now offers five offshore RMB accounts in four leading financial centres.

Clearstream, the international central securities depository of Deutsche Börse, is making further progress in its Asia strategy: the company will open three new offshore Renminbi Cash Correspondent Bank (CCB) accounts with Chinese banks based in Frankfurt, Luxembourg and Singapore.

The move is the latest by Deutsche Börse Group and Clearstream to provide investors in Asia and Europe with more options and greater flexibility in managing their offshore RMB liquidity.

The new CCB accounts will be opened at Bank of China Frankfurt, Industrial and Commercial Bank of China Limited (ICBC) Luxembourg Branch and ICBC Singapore Branch and are in addition to two existing RMB CCB accounts with Bank of China (Hong Kong) and Standard Chartered Bank (Hong Kong). This offers customers a choice of five RMB CCB accounts in four leading financial centres, Hong Kong, Singapore, Frankfurt and Luxembourg.

Clearstream Bank Luxembourg and Deutsche Börse Group have offered strong support to the process of internationalisation of the Chinese currency and the development of offshore RMB liquidity, reacting nimbly to the evolving offshore RMB requirements of customers.

Today’s news follows other key Clearstream and Deutsche Börse RMB milestones, such as the launch of comprehensive settlement and custody services for China. A-shares via the Shanghai-Hong Kong Stock Connect in November 2014, the signing of an MOU between Clearstream and ICBC Luxembourg Branch in December 2014 and an MOU between Deutsche Börse and Bank of China in 2013.

Clearstream Executive Board Member and Head of Business Management Berthold Kracke said: “This broadening of our RMB cash network will give our customers additional options and flexibility to access and manage RMB liquidity in the Asian and in the European time zone. The new accounts will further deepen Clearstream’s RMB liquidity pool and help satisfy increasing client demand for the currency,” and added : “Clearstream’s RMB business volume has developed very positively in recent years: The total number of RMB bonds distributed by Clearstream increased by a factor of 10 over the 2012-2014 period; settlement volumes have risen almost three times while assets under custody quadrupled between the start of 2013 and the end of 2014, and we expect this positive trend to continue in 2015.

Clearstream has been supporting the internationalisation of the RMB since the early days and we are convinced that this latest step will contribute to strengthening Luxembourg, Frankfurt and Singapore as offshore RMB centres,”

Kracke concluded : BOC Frankfurt and ICBC’s Luxembourg and Singapore branches also welcomed today’s news. “Since BOC Frankfurt has been designated by PBOC as the RMB clearing bank in Frankfurt, we have provided RMB clearing services for more than 36 financial institutions. The launch of Clearstream’s RMB account is especially a milestone. In the future, we will work together with global clearing network of BOC to supply more efficient and convenient clearing services, and promote the development of RMB financial products to accelerate the RMB internationalization.”

Mrs. Gao Ming, General Manager of ICBC Luxembourg Branch said : “ICBC Luxembourg Branch has been designated as the RMB clearing bank in Luxembourg on September 16, 2014. This appointment marks a major step for ICBC to create a global RMB clearing network across different time zones. The MOU between Clearstream and ICBC Luxembourg Branch will make both banks work closely to enhance the RMB clearing infrastructure and facilitate offshore RMB liquidity. By providing strong RMB liquidity facilities, ICBC Singaporacts as an important force to support offshore RMB market. We are looking forward to further cooperation with Clearstream.”

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