Spotlight on RMB Services

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J.P. Morgan now offers RMB services in 14 offshore locations worldwide, including Hong Kong, New York, Singapore, Sydney, London, Mumbai, Taipei, Seoul, Tokyo, Sao Paulo, Manila, Kuala Lumpur and Bangkok. In addition, J.P. Morgan has launched an innovative repo financing collateral management platform, which has been developed in partnership with the Hong Kong Monetary Authority (HKMA).

Please contact your Treasury Sales Manager or RMB.communications@jpmchase.com if you have any questions.

Summary of Key Cross-Border RMB Regulatory Changes
Regulation	Highlights	Summary
June 2012
MDE relaxation	The list of Merchandise Designated Enterprise (MDE) is removed	All China importers and exporters can receive RMB payments/receipts with pre-registration in place
July 2012
RMB Foreign Direct Investment (FDI) and Shareholder Loans	Approval shall be sought prior to payments being made to a designated account (i.e. capital account) The requirement to provide proof of source of funds	Details are available in the RMB FDI Guidebook
August 2012
The scope for fund usage through non-resident account (NRA) in China	The lifting on one-way FX conversions (i.e., sell RMB/ buy foreign currency (FCY)) and remittance of FCY out of Mainland China. What's allowed: approved trade settlement, other current account items (interest/bank charges), same name transfer within China What's not allowed: cross-border, same name transfer	Overseas companies can convert proceeds earned in China into FCY prior to settlement overseas Cross-border, same name transfer and payments to individual accounts in China remain prohibited
October 2012
Cross-border lending initiative	On a pilot basis, Shanghai-incorporated companies may take part in the initiative after obtaining approval from PBOC Shanghai. Eligibility is reviewed on a case-by-case basis Cross-border intercompany loans are made possible under the initiative	The initiative provides opportunities for overseas companies with China incorporated subsidiaries to centralize RMB payments/receipts, provided the header account is located in the pilot city against regulatory approval
Relaxation on documentary requirements — pilot program	On an approval basis, the requirement of ALL trade documentation is exempted for non-capital trades. Eligibility is limited to Shanghai incorporated companies and subject to approval by PBOC Shanghai Branch (Oct 2012)	Eligible companies must fulfill a set of criteria and obtain approval from PBOC Shanghai. Once approved, no trade documents are required for RMB cross-border payment/receipt settlement