ICBC Singapore Branch has recently completed the first pledged bond repurchase in the national inter-bank bond market, involving an amount of RMB 200 million. This is the first bond repurchase concluded by a foreign banking institution in the domestic inter-bank bond market and the first bond repurchase concluded by a foreign RMB clearing bank. The PBOC issued a notice in June 2015, approving foreign RMB clearing banks and foreign RMB settlement banks to conduct bond repurchase in the inter-bank bond market and transfer the proceeds for overseas usage.

According to an official of ICBC Singapore Branch, the approval for foreign banking institutions to participate in RMB bond repurchase provides RMB investment and financing facility for Singaporean banks, which is conducive in diversifying Singapore’s RMB products and increasing liquidity in Singapore’s RMB market. On the one hand, financial institutions participating in bond repurchase can obtain short-term RMB funds and improve the liquidity of RMB bonds. On the other hand, financial institutions can make short-term bond investment in the domestic market and increase the yield on RMB funds through bond repurchase.

After authorized by the PBOC to serve as RMB clearing bank in Singapore in 2013, ICBC Singapore Branch has achieved massive growth in RMB clearing service, with its RMB clearing volume reaching RMB 67 trillion by the end of June 2015.