International Businesses
(I) Spot foreign exchange trading business
Foreign exchange settlement business refers to the business that member companies sell their own foreign exchange to SFC and SFC converts foreign exchange to RMB in equivalent amount as per the listed price or inquiry on that very day. Foreign exchange sales business refers to the business that SFC sells foreign exchange to member companies and collects RMB in equivalent amount as per the listed price or inquiry on that very day.
Features
- · Simple and convenient formalities;
- · Favorable listed price adds to the exchange settlement yield of member companies and reduces their costs of purchasing foreign exchange;
- · Inquiry service is provided to help member companies lock exchange rate in a timely way and guard against market risks.
(II) Cross-border centralized foreign exchange receipt and payment
It refers to the cross-border foreign exchange receipt and payment business handled by SFC for member companies in the form of remittance according to their instructions.
Features
- · Direct receipt and payment in RMB evades exchange rate risks.
- · Timely and accurate funds credited into account.
(III) Cross-border centralized RMB receipt and payment
It refers to the business that SFC handles cross-border RMB receipt and payment under current accounts of member companies in a centralized way.
Features
- · Direct receipt and payment in RMB evades exchange rate risks.
(IV) Cross-border two way RMB capital pool
As the host entity of Sinopec’s cross-border two way RMB capital pool, SFC handles cross-border RMB adjustment, concentration, receipt and payment operations for recorded and registered non-financial member companies in the form of entrusted loans.
Features
- · Conducive to capital adjustment both at home and abroad and to the best use of two markets;
- · Conductive to cross-border capital concentration and increase in use efficiency.
(V) Forward foreign exchange settlement business/strong>
Forward foreign exchange trading business refers to the contract signed by SFC and member companies, in which the two parties agree on the currency, amount and exchange rate for the transaction on a certain date in the future (other than the immediate interest starting date), and member companies settle or sell foreign exchange with SFC in accordance with the contract on the maturity date.
Features
- · Help member companies lock forward exchange rates, fixed costs or benefits, and effectively avoid the risk of market exchange rate fluctuations;
- · Simple and convenient formalities;
- · Preferential price, increase forward exchange settlement income, reduce forward purchase cost.
