Treasury Services-Agency Transactions

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Treasury Services-Agency Transactions

I. Products for Agency Transactions

Agency transactions of treasury services refer to financial derivative transactions conducted by CDB on behalf of its clients for the purpose of fund management and debt hedging. Over the years, we developed a complete product system for agency transactions, covering exchange rates, interest rates, commodity and low-carbon finance consulting service. It meets the main hedging demands regarding interest and exchange rates of foreign currency loans and commodities, and has acquired a strong influence on the financial markets in China and overseas.

II. CDB’s Advantages in Agency Transactions of Treasury Services

(i) CDB has been assigned with sovereign credit rating. In June 2015, China Banking Regulatory Commission officially specified the regulation policy for CDB’ credit rating – this policy for CDB will be consistent and remain valid without expiration. It attests to the state’s commitment to permanent credit support for the bank. The high credit rating enables the bank to obtain high-value long-term credit at a competitive cost in derivative transactions.

(ii) CDB is the only financial holding bank in China that offers a full suite of services including “lending, bond issuance, investment, securities and financial leasing” to meet the varying financial needs of customers.

(iii) CDB is a leading player in the interbank market. We have remained the pacesetter for market transactions as the “most influential bank in the national interbank market” in 2014, and the largest market-maker for forward foreign exchange swaps.

(iv) Extensive experiences in agency transactions of treasury services. CDB is one of the first Chinese banks licensed for commodity and stock derivative trading, and the first bank to launch carbon trading and consulting businesses in China. To date, we have provided more than 100 hedges for nearly 100 corporate clients and have therefore gained substantial marketing and management experiences in relevant businesses.