The Working Group on U.S. RMB Trading and Clearing
“Advancing a mechanism to trade the Chinese currency in the United States will improve the competitiveness of U.S. companies, while furthering America’s financial sector and economy”
MICHAEL R. BLOOMBERG, CHAIR
China is the U.S.’s largest trading partner
USD 61.2 billion in Oct 2021
Source: IMF, Bloomberg
China is the U.S.’s third largest export market
USD 13.1 billion in Oct 2021
Source: IMF, Bloomberg
The U.S. is China’s largest export market
USD 48 billion in Oct 2021
Source: IMF, Bloomberg
Objectives
The Working Group expects to identify, evaluate, and recommend opportunities to develop and expand the trading, clearing, and settlement of RMB in the United States. To achieve these objectives, The Working Group will:
- serve as a forum for discussions among members interested and/or engaged in RMB trading, clearing, and settlement in the United States;
- review different operating models for RMB trading, clearing, and settlement, including characteristics of models that have developed to date, or are being developed, in other jurisdictions;
- consider types of RMB products and services that could be useful for U.S. markets;
- consider enhancements to, or further development of, existing U.S. financial market infrastructure to facilitate RMB trading, clearing, and settlement in the United States;
- educate the U.S. marketplace on the benefits and mechanics of RMB trading, clearing, and settlement;
- provide periodic public reports on progress made by The Working Group; and
- recommend new RMB trading, clearing, and settlement capabilities for the United States, consistent with existing market practices and regulatory requirements.
“Fostering closer ties between the United States and China is critical for a healthy global economy.”
Thomas J. Donohue
Members
The U.S. Chamber of Commerce
Agricultural Bank of China
Bank of America Merrill Lynch
Bank of China
Bank of Communications
BNP Paribas
BNY Mellon
China Construction Bank
China Merchants Bank
Citi
CITIC
City National Bank
CLS Bank International
CME Group
East West Bank
Fifth Third Bank
First Republic Bank
Goldman Sachs
HSBC
Huntington Bank
Industrial and Commercial Bank of China
Intercontinental Exchange
JPMorgan Chase & Co.
Morgan Stanley
MUFG Union Bank
Silicon Valley Bank
State Street
Standard Chartered
TCW Group
The Clearing House
The Depository Trust and Clearing Corporation
Wells Fargo & Co.
U.S. RMB Clearing Banks
Bank of China New York Branch
To learn more, please contact Martin Maciak
JPMorgan Chase Bank, National Association
To learn more, please contact your J.P. Morgan representative.
Subcommittees and Subcommittee Co-Chairs
Business Community Outreach
The U.S. Chamber of Commerce
China Construction Bank
CME Group
Wells Fargo & Co.
Operating Model Options
Bank of China
Citi
Regulatory Considerations
Bank of America Merrill Lynch
HSBC
RMB Products and Services
Agricultural Bank of China
Industrial and Commercial Bank of China
State Street
Downloads
Working Group Materials
Charter
Antitrust Guidelines
Meeting Agenda – November 22, 2019
Meeting Minutes – May 2, 2018
Meeting Agenda – January 20, 2016
Meeting Minutes – January 20, 2016
Meeting Agenda – February 24, 2016
Meeting Minutes – February 24, 2016
Meeting Agenda – April 7, 2016
Meeting Minutes – April 7, 2016
Meeting Agenda – April 26, 2016
Meeting Minutes – October 31, 2016
Meeting Agenda – February 1, 2017
Meeting Agenda – May 1, 2017
Meeting Minutes – May 1, 2017
Meeting Agenda – December 5, 2017
Meeting Minutes – December 5, 2017
Meeting Agenda – March 19, 2018
Meeting Minutes – March 19, 2018
Meeting Agenda – May 2, 2018
Resources and Reports
Renminbi Qualified Foreign Institutional Investor (RQFII) Scheme
China Bond Market: Index Update
RMB Qualified Foreign Institutional Investors (RQFII) Scheme
The CIBM License Process: Interbank Bond Market Overview
RMB Internationalization Update
Bank of China 2016 White Paper on RMB Internationalization
Possible RMB Operating Models
Initial Observations of the Working Group – April 5, 2016
Could Multicurrency Accounts Improve U.S. Corporate Competitiveness?
The Working Group on U.S. RMB Trading and Clearing: Roadmap for Action
2016 HSBC Renminbi Internationalisation Survey
RMB Case Studies
U.S. RMB Clearing Case Studies
News
China’s Regulatory Reform Timeline
Key Milestones
Regulators Finalize New Rules for Domestic Credit Rating Industry
7 August 2021
To promote the standardized development of the credit rating industry in China’s bond market, the People’s Bank of China, in conjunction with the National Development and Reform Commission, the Ministry of Finance, the China Banking Regulatory Commission, and the China Securities Regulatory Commission, issued the “Notice on Promoting the Healthy Development of the Credit Rating Business in the Bond Market”. The notice takes effect on August 6, 2022.
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China Passes Data Security Law
10 June 2021
On June 10, 2021, the National People’s Congress passed the People’s Republic of China (PRC) Data Security Law (DSL), which will become effective on September 1, 2021.
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SAFE Expands QDII Program
2 June 2021
On June 2, 2021, State Administration of Foreign Exchange (SAFE) granted 17 financial institutions a total qualified domestic institutional investor (QDII) quota of USD 10.3 billion.
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CBIRC Issues Rules on the License Management of Banking and Insurance Institutions
7 May 2021
The CBIRC has published new rules requiring financial companies in China to apply for relevant business licenses. The “Administrative Measures for the License of Banking and Insurance Institutions” includes twenty measures which are effective from July 1, 2021.
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Notice on Several Measures to Promote Trade Liberalization and Facilitation of Hainan Free Trade Port
23 April 2021
The Ministry of Commerce and 19 other government bodies released a circular of 28 measures to liberalize and facilitate trade in goods and services at the Hainan Free Trade Port.
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Opinions on Financial Support for the Comprehensive Deepening of Reform and Opening-up in Hainan (Yin Fa [2021] No. 84)
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On April 9, 2021, four regulators, including the People’s Bank of China (PBOC), the China Securities Regulatory Commission (CSRC), the China Banking and Insurance Regulatory Commission (CBIRC), and the State Administration of Foreign Exchange (SAFE) announced, 33 financial measures to support Hainan’s comprehensive deepening of reform and opening up. The measures are intended to increase the convertibility of the renminbi to support the liberalization and facilitation of cross-border trade and investment, improve the Hainan financial market system, and expand Hainan’s financial industry.
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China Issues 22 Measures Easing Market Access in Hainan Free Trade Port
8 April 2021
China’s National Development and Reform Commission (NDRC) and Ministry of Commerce (MOFCOM) jointly issued guidelines on easing market access in Hainan Free Trade Port.
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China Drafts New Guidelines for Domestic Credit Rating Agencies
28 March 2021
The People’s Bank of China (PBOC), in conjunction with the National Development and Reform Commission (NDRC), the Ministry of Finance (MOF), the China Banking Regulatory Commission (CBRC) and the China Securities Regulatory Commission (CSRC), have drafted the “Notice on Promoting the High-quality and Healthy Development of the Bond Market Credit Rating Industry” for public comment. The aim is to promote the standardized development of the bond market credit rating industry, improve the quality and competitiveness of China’s credit rating, and promote the credit rating industry to better serve the overall situation of the healthy development of the bond market. Feedback is due by April 12, 2021.
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CBIRC Removes Foreign Ownership Cap of Life Insurance Companies
19 March 2021
The CBIRC has removed the foreign ownership cap of life insurance companies but has included a new rule for national security reviews if the investment affects or may affect national security.
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China Launches Multi-Currency Cash Pooling Pilot for Multinational Companies
12 March 2021
On March 12, the People’s Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) launched the first batch of pilot projects for the integrated domestic and foreign currency fund pool business of multinational companies in Shenzhen and Beijing to further facilitate the coordinated use of cross-border funds of multinational companies and corporate groups. Highlights include the adjustment of foreign debt and overseas lending quotas and the ability of multinationals to purchase foreign exchange at will within a certain amount.
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HKMA Announces Enhanced Currency Conversion Arrangement Involving Onshore RMB (CNY) Under Northbound Bond Connect
5 March 2021
Pursuant to the China Foreign Exchange Trade System (CFETS) notice issued on 24 September 2020, the Hong Kong Monetary Authority (HKMA) provided guidance for banks providing enhanced currency conversion and foreign exchange hedging services under Bond Connect.
Measures for the Depositing of Clients’ Reserves of Non-bank Payment Institutions
19 January 2021
“Order of the People’s Bank of China [2021] No.1” outlines measures to regulate the management of customer reserve funds of non-bank payment institutions, protect the legitimate rights and interests of the parties, and promote the healthy and orderly development of the payment industry. The measures are effective from March 1, 2021.
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Notice on Further Optimizing Cross-border RMB Policies to Support Stabilizing Foreign Trade and Foreign Investment (Yin Fa [2020] No. 330)
4 January 2021
The People’s Bank of China together with 5 other Chinese regulators issued new rules covering the promotion of higher-level trade and investment facilitation of RMB settlement around the needs of the real economy, further simplifying the cross-border RMB settlement process, optimizing the management of cross-border RMB investment and financing, and facilitating personal current accounts. The rules are effective from February 4, 2021.
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China Releases New QFII/RQFII Rules
25 September 2020
The China Securities Regulatory Commission (CSRC), the People’s Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) jointly issued measures to consolidate the QFII/RQFII schemes into one and expand the investment scopes for QFII/RQFII. The new regulations take effect on November 1, 2020.
Measures for the Administration of Domestic Securities and Futures Investment by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (CSRC, PBOC and SAFE)
Provisions on Issues Concerning the Implementation of the Measures for the Administration of Domestic Securities and Futures Investment by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (CSRC)
CFETS Announces Enhancements to Currency Conversion and Foreign Exchange Hedging Under Bond Connect
24 September 2020
China Foreign Exchange Trade System (CFETS) published the “Notice on the Implementation of the Enhanced Arrangements of the Currency Conversion and FX Risk Management under the Bond Connect Scheme”. Each Bond Connect investor will now be able to select no more than three Hong Kong SAR settlement banks to conduct currency conversion and foreign exchange hedging services.
Implementation Measures for the Protection of the Rights and Interests of Financial Consumers of the People’s Bank of China
15 September 2020
The implementation orders outlined in “Order of the People’s Bank of China [2020] No. 5” aim to protect the legitimate rights and interests of financial consumers, regulate the conduct of financial institutions to provide financial products and services, maintain a fair and just market environment, and promote the healthy and stable operation of the financial market. The implementation measures highlight that banks and payment institutions must not refuse to provide financial products or services on the grounds that financial consumers do not agree to the processing of their financial information, unless the processing is necessary to provide financial products or services.
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Tentative Measures for the Supervision and Administration of Financial Holding Companies
11 September 2020
On September 11, 2020, China’s State Council and the People’s Bank of China (PBOC) issued rules governing domestic financial holding companies. “Order of the People’s Bank of China [2020] No. 4” seeks to regulate the acts of financial holding companies, strengthen the supervision and administration of the establishment of financial holding companies by non-financial enterprises, and prevent systemic financial risks. The measures are effective as of November 1. 2020.
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Yin Fa [2020] No. 95
14 May 2020
Opinions of the People’s Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, and the State Administration of Foreign Exchange on Financial Support for the Construction of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). The measures introduced various support mechanisms concentrating on cross-border investment and financing facilitation, financial market and financial infrastructure connectivity, and the internationalization of RMB (promoting the use of RMB currency in the GBA).
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PBOC & SAFE Remove QFII/RQFII Investment Quotas and Promote Further Opening-up of China’s Financial Market
7 May 2020
The People’s Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) issued the “Regulations on Funds of Securities and Futures Investment by Foreign Institutional Investors” (PBOC & SAFE Announcement [2020] No. 2), to standardize and simplify administrative requirements on the remittance and repatriation of funds as well as currency exchanges by foreign institutional investors, aiming to better facilitate foreign investors’ participation in China’s financial market.
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Implementation Measures of the PBOC for Administrative Licensing
20 March 2020
The People’s Bank of China (PBOC) has issued new rules to improve the efficiency of administrative licensing with the help of information technology. The new rules replace those from 2004 and are effective from June 1, 2020.
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Circular of the State Administration of Foreign Exchange Further Promoting Cross-border Trade and Investment Facilitation (Circular No. 28)
23 October 2019
Circular No. 28 aims to further liberalize and streamline the foreign exchange control over cross-border trade and foreign investment.
Notice of the People’s Bank of China and the State Administration of Foreign Exchange on Matters concerning Further Facilitating Foreign Institutional Investors’ Investment in the Interbank Bond Market (Yin Fa [2019] No. 240)
16 October 2019
The PBOC and SAFE jointly issued new rules further facilitating foreign institutional investors to invest in the domestic interbank bond market.
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CSRC Announces Timetable to Remove Equity Cap in Foreign-invested Securities and Fund Management Firms
15 October 2019
The CSRC announced foreign ownership limits in fund management companies will be removed nationwide as of April 1st, 2020 and foreign ownership limits in securities companies will be removed as of December 1st, 2020.
Removal of Foreign Ownership Limit in Foreign-Invested Futures Companies
15 October 2019
The CSRC announced that the foreign ownership limit in foreign-invested futures companies will be fully removed as of January 1, 2020. Qualified foreign investors can apply for 100% ownership in domestic futures companies and the CSRC will review the applications in accordance with laws and regulations.
SAFE Abolishes Investment Quota Restrictions of Qualified Foreign Institutional Investors (QFII/ RQFII) and Further Expands Opening up of Financial Markets
10 September 2019
The State Administration of Foreign Exchange has decided to cancel the investment quota limitations of qualified foreign institutional investors (QFII) and RMB qualified foreign institutional investors (RQFII).
Shanghai-London Stock Connect Receives Regulatory Approval
17 June 2019
The Financial Conduct Authority (FCA) and the China Securities Regulatory Commission (CSRC) made a joint announcement of their approval of the Shanghai and London Stock Exchanges’ proposed new Shanghai-London Stock Connect.
Relevant Measures Concerning Further Expansion of External Opening of the Financial Sector
20 July 2019
The State Council’s Office of Financial Stability and Development Committee issued 11 measures for further opening of the financial industry, including allowing foreign-funded institutions to conduct credit rating business in China.
PBOC Names JPMorgan First Non-Chinese Yuan Clearing Bank
13 February 2018
The People’s Bank of China appointed JPMorgan Chase Bank N.A. as a yuan clearing bank in the U.S., the first non-Chinese lender for such a role globally and a further step to promote international use of the currency.
China Liberalizes Capital Repatriation and FX Management for QFII/RQFII
10 June 2018
The People’s Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) issued new rules to aid the repatriation of capital and the management of foreign exchange risks in association with securities investments of qualified foreign institutional investors (QFII) and RMB-qualified foreign institutional investors (RQFII). The new rules, which take effect from 12 June 2018, remove the cap on monthly repatriation by dollar-denominated QFII and the lockup period on investment principals for both QFII and RQFII. SAFE has also allowed QFII and RQFII to engage in forex hedging in China.
Provisions on the Foreign Exchange Administration of Domestic Securities Investment by Qualified Foreign Institutional Investors (SAFE)
现在读 | Chinese
Circular of the PBOC and SAFE on the Management of Domestic Securities Investment by RMB Qualified Foreign Institutional Investors (Yin Fa [2018] No. 157) (PBOC and SAFE)
China Lifts Foreign Ownership Limit
10 November 2017
China plans to relax the investment ratio of single or multiple foreign investors directly or indirectly in securities, fund management, and futures companies. On 10 November 2017, Vice Finance Minister, Zhu Guangyao announced that foreign firms will be allowed to own up to 51% in securities ventures.
现在读 | Chinese
Trial Operation of Northbound Trading on Bond Connect Announced
2 July 2017
The People’s Bank of China and the Hong Kong Monetary Authority have approved the launch of mutual bond market access between Hong Kong SAR and Mainland China (Bond Connect). Trial operation of Northbound Trading will commence on 3 July 2017.
Bond Connect Approved by the PBOC and the HKMA
16 May 2017
In order to promote the development of the bond markets in Hong Kong and Mainland China, the People’s Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA) have approved the establishment of mutual bond market access between Hong Kong and Mainland China (Bond Connect).
Bank of China New York Branch Designated as RMB Clearing Bank for the U.S.
20 September 2016
The People’s Bank of China (PBOC) designated Bank of China’s New York branch to provide RMB clearing and settlement services in the United States, as recommended by the Working Group in its Roadmap for Action and agreed to in June 2016 in the U.S.-China Strategic and Economic Dialogue.
CSRC Removes Asset Allocation Restriction on QFII/RQFII
10 September 2016
To provide convenience for investment operations and to bring in more long-term foreign capital, the CSRC, in principle, will lift the limits previously imposed on the asset allocation of QFII and RQFII, who will then have full discretion on this matter.
Shenzhen-Hong Kong Stock Connect Approved
17 August 2016
The China Securities Regulatory Commission (CSRC) and the Securities and Futures Commission (SFC) have approved, in principle, the establishment of mutual stock market access between Shenzhen and Hong Kong (Shenzhen-Hong Kong Stock Connect).
Shenzhen-Hong Kong Stock Connect Approved
7 June 2016
Following the Strategic & Economic Dialogue between the U.S. and China on June 6 and 7, 2016, China granted the U.S. a quota of RMB 250 billion (USD 38 billion) under the Renminbi Qualified Foreign Institutional Investor (RQFII) program, the largest quota allocated to a country outside of Hong Kong.
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