The reporter was informed by Industrial Bank that the bank’s cross-border RMB receipts and payments amounted to 2,162.1 billion yuan in 2023, an increase of 55.97%, exceeding the milestone of two trillion yuan and hitting a new record high.
“In recent years, in order to serve the RMB internationalization strategy, Industrial Bank has actively participated in the construction of cross-border financial infrastructure, served cross-border trade and investment, and deeply engaged in the two-way opening up of China’s capital market to the outside world, promoting the rapid growth of cross-border RMB business,” said a spokesperson from the International Business Department of Industrial Bank.
In terms of participating in the construction of national financial infrastructure, it was reported that Industrial Bank has established a strategic partnership with cross-border clearing companies, aiming to foster the innovation and promotion of products for cross-border RMB transactions via the Cross-Border Inter-bank Payment System (CIPS). The bank has also facilitated access to CIPS for both domestic and foreign institutions. As of the end of 2023, 153 banks had connected to CIPS as indirect participants through Industrial Bank, with the amount of agent cross-border payments increasing by 120% year-on-year; over 120 clients have accessed the Cross-border Innovative Service Device (CISD) through the Bank, with a cumulative amount of RMB cross-border payments of 623,888 million yuan, positioning the bank as a leader in the market.
In terms of serving cross-border trade and investment, in order to serve the real economy, Industrial Bank has continued to enrich the scenarios of cross-border RMB settlement in traditional trade, new forms of foreign trade, bulk commodities, and emerging race tracks, and provided enterprises with convenient, differentiated, and comprehensive services such as settlement, financing, and exchange rate hedging, contributing to the steady internationalization of RMB. As of the end of 2023, the Bank’s cross-border RMB receipts and payments under trade had increased by 41.54% year-on-year.
In terms of deeply engaging in the opening up of China’s capital market, Industrial Bank has adeptly seized the opportunities arising from national policies facilitating connectivity between domestic and foreign capital markets. The Bank has provided cross-border financial services for capital markets such as cross-border bond investment, return of Chinese stocks listed overseas to domestic stock exchanges, and cross-border asset transfers. These initiatives have greatly facilitated enterprises’ RMB-denominated cross-border investments. As of the end of 2023, the Bank’s cross-border RMB receipts and payments under capital had increased by 59.73% year-on-year.
The rapid growth of cross-border RMB business owes much to technological advancements. In 2023, Industrial Bank upgraded its comprehensive online cross-border financial service platform, known as Industrial Bank Steward (Easy Trade), launched products enabling fully online financing, settlement, and treasury management, and joined the Project Bridge, the pilot project experimenting with a multiple-central bank digital currency (multi-CBDC) platform for cross-border payments. These moves are aimed at meeting the needs of enterprises in cross-border RMB settlement and financing online, effectively reducing enterprise financing costs, and continuously improving the convenience of cross-border RMB transactions.