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I. Business Overview
On November 5, 2014, the PBC issued the Notice of the People’s Bank of China on Matters Related to Overseas Securities Investment by Qualified Domestic Institutional Investors in RMB, allowing domestic financial institutions (RMB Qualified Domestic Institutional Investors, RQDII) licensed by the financial regulatory authority under the State Council to conduct overseas securities investment in RMB.
RQDII can invest in RMB-denominated products in overseas financial markets (except for the overseas application of banks’ own funds) with its own RMB funds or by raising RMB funds from domestic institutions and individuals.
II. Target Customers
According to relevant RQDII regulations, the RQDII custody services of ICBC mainly target at domestic financial institutions that have obtained licenses from the financial supervisory and regulatory authorities under the State Council and have carried out overseas securities investment in RMB.
III. Scope of Services
ICBC provides domestic institutions with comprehensive, professional and quality RQDII custody services, including basic custody services and value added custody services.
i. Basic services
1.Account opening: Open domestic and overseas custody accounts;
2.Asset custody: Provide asset custody service for RQDII customers;
3.Settlement of transaction: Complete securities delivery and clearing for overseas investments of RQDII customers;
4.Accounting: Record RQDII investment activities in the account books;
5.Asset valuation: Valuate RQDII investment assets according to international accounting standards;
6.Company information: Provide the information about RQDII securities holdings and financial market news;
7.Investment supervision: Supervise shareholding ratio according to RQDII portfolios and regulatory requirements;
8.Receipt of income: Track equity income on a real-time basis, and ensure that it can be timely posted to accounts;
9.Proxy voting: Overseas proxy voting under the entrustment of customers;
10.Reporting service: Provide customers with reports on investment and clearing on a regular basis;
11.Record keeping: Properly keep the records on investment and fund inflows/outflows and other materials;
12.Other services: Other services required by regulatory authorities.
ii. Value-added services
1.Performance evaluation: Performance estimation and evaluation for RQDII portfolios;
2.Risk management: RQDII investment risk warning and risk assessment report;
3.Cash management: Multiple cash management instruments for RQDII customers;
4.Electronic banking: Uploading and downloading of electronic banking data;
5.Tax agency: Declare and pay taxes for RQDII customers as an agent;
6.Customized reports: Provide reports in customized types and formats;
7.Securities lending/borrowing: Lend and borrow designated securities as entrusted by customers;
8.Other services: Other customized requests proposed by RQDII customers.
IV. Service Advantages
RQDII product custody service is similar to QDII custody service, and ICBC has accumulated rich experience in QDII product custody service.
1.Over the years, the early and in-depth research on QDII custody services by ICBC has made the Bank maintain a leading position in the banking sector in terms of such business.
2.ICBC provided custody services for the first domestic overseas wealth management product of commercial bank (banking QDII product) – BOC USD Enhanced Cash Management (September 2006), the first domestic QDII product of fund company (fund QDII product) – HuaAn International Allocation Fund (November 2006), and the first domestic stock QDII product of fund company – Southern Global Selected Allocation Fund (September 2007).
3.As the largest custodian bank in China, ICBC has maintained its first position in the market for 25 years in terms of market share of asset custody business.
4.ICBC is also the most professional custodian bank in China, with an advanced custody service system independently developed by it. The system has obtained ISAE3402 authentication (formerly known as SAS70), the first one of its kind in China, indicating that ICBC’s internal control of custody services has met international standards.
V. Flow Chart
VI. Contact Information
If you would like to apply for any service, please contact the Global Asset Custody Division of Asset Custody Department of ICBC:
Contact: Ma Pingchuan
Tel.: (8610) 66105755/81012306
E-MAIL: pingchuan.ma@icbc.com.cn
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