J.P. Morgan Provides Rmb Cross-Border Trade Settlement Services From Mainland China
J.P. Morgan’s Continued Leadership in Global Trade Helps China-Based Clients Mitigate Foreign Exchange Risk and Streamline Cross-Border Payments
NEW YORK - J.P. Morgan today announced that it has received approval to provide Renminbi (RMB) cross-border trade settlement services to China-based corporate clients as a domestic settlement bank through its locally incorporated bank. J.P. Morgan Chase Bank (China) Co. Ltd, Shanghai Branch is authorized to originate and receive payments in RMB to settle trade transactions for eligible corporates. The Bank now offers Import Letter of Credit issuance and payment; Export Letter of Credit advising, negotiation and confirmation; and Standby Letter of Credit or Bank Guarantee issuance in RMB.
“With RMB International Trade Settlement, J.P. Morgan is able to help its Chinese corporate clients mitigate the higher level of foreign exchange risk they face as a consequence of recent turmoil in the domestic markets. These fluctuations have resulted in lower returns on foreign currency investments,” said Dani Cotti, Global Trade Executive, J.P. Morgan Treasury Services.
Lisa Robins, J.P. Morgan Treasury & Securities Services China Executive added: “We are proud to be one of the few foreign banks to be authorized to offer RMB cross-border settlement services from Shanghai and remain committed to growing our China operations to better serve our local and regional clients.”
With this announcement, J.P. Morgan moves another step closer to delivering a full suite of RMB cross-border clearing and settlement services. In September 2009, J.P. Morgan’s Hong Kong branch received authority to originate and receive payments in RMB to settle applicable trade transactions with approved corporates based in Mainland China. Hong Kong is the first J.P. Morgan branch outside of Mainland China to go live, with more locations to be added in the near future.
J.P. Morgan Chase Bank (China) Co Ltd, Shanghai Branch also has filed for authority to become a ’domestic agent bank’ to provide RMB clearing services to JPMorgan Chase branches as well as financial institution clients in eligible countries.
In a volatile period for international trade, J.P. Morgan’s demonstrated capability and intense client focus have continued to generate a high degree of visibility and recognition for the firm. J.P. Morgan was recently recognized as “Most Innovative and Responsive Trade Bank” and “Best Trade Bank - North America” by Global Trade Review; Best Online Trade Bank by Trade & Forfaiting Review; and Best Supply Chain Finance Bank by Treasury Management International.
About J.P. Morgan Treasury Services
The Treasury Services business of J.P. Morgan is a top-ranked, full-service provider of innovative payment, collection, liquidity management, trade finance, commercial card and information solutions to corporations, financial services institutions, middle market companies, small businesses, governments and municipalities worldwide. With more than 100,000 clients and services provided in more than 60 countries and 40 states, J.P. Morgan Treasury Services is one of the world’s largest providers of treasury management services and a division of JPMorgan Chase Bank, N.A., member FDIC. More information can be found at www.jpmorgan.com/ts.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.1 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com
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