I. Description Account-based foreign exchange is an investment product provided by the ICBC for individual customers in which a variety of foreign exchanges in RMB are traded by means of calculating shares without drawing the real exchanges. It can be divided into sale after purchase and sale before purchase transactions. You can issue the trading instructions for real-time transactions, pending order transaction, inquiry and other operations for account-based foreign exchange, via the ICBC Internet banking, mobile banking and other channels.
II. Category The following foreign currencies are available for customers to buy/sell account-based foreign exchange: Euro, British Pound, Canadian Dollar, Swiss Franc, Australian Dollar, Japanese Yen, New Zealand Dollar, Singapore Dollar, Norwegian Krona, and Swedish Krona. The specific currencies available are subject to the ICBC.
III. Features 1. This is a service for buying/selling foreign exchange via account. Foreign exchange shares in the account cannot be withdrawn in foreign currency or for transfer/remittance. 2. RMB is used for buying/selling against foreign currencies, and buying/selling between foreign currencies is forbidden in the account. 3. There is no restriction on annual trade quota.
IV. Target Customers 1. Customers with actual needs: personal customers with the needs of foreign trade, traveling abroad, studying abroad or overseas shopping, by means of purchase before sale transactions of corresponding variety of account-based foreign exchange, can ward off appreciation risk of the currency against RMB, or by means of sale before purchase transactions of corresponding variety of account-based foreign exchange, can avoid depreciation risk of the currency against RMB. 2. Transaction-oriented customers: professional investment-oriented customers that have had certain researches on the foreign exchange market, and are able to make spread income by means of profit-taking or bargain-hunting out of their forecast. Account-based foreign exchange provides continuous quotations from 7:00 a.m. Monday to 4:00 a.m. Saturday Beijing time, and can be traded by either personal Internet banking or mobile banking. It facilitates customers to seize investment and trading opportunities at any time in case of market changes. Account-based foreign exchange is not restricted by the annual quota of foreign exchange settlement and sale, which makes it better meet the demands of the above-mentioned customers for large-sum transactions.
V. Price The ICBC will use the international market price, RMB exchange rate in China and market liquidity as reference to quote the prices of foreign exchange and make necessary adjustments depending on market conditions. The prices offering include the bank’s buying rate and selling rate. The bank’s buying rate is the price at which the ICBC buys account-based foreign exchange from customers (customers sell account-based foreign exchange to the ICBC). The bank’s selling rate is the price at which the ICBC sells account-based foreign exchange to customers (customers buy account-based foreign exchange from the ICBC).
VI. Features and Advantages 1. Convenient services: You can buy/sell foreign exchange, place orders or make inquiries through Internet banking, mobile banking and other e-banking channels. 2. Long trading hours: e-banking services are available from 7:00 a.m. (Monday) to 4:00 a.m. (Saturday); ICBC provides continuous quotations to the customers, and the customers can conduct real-time transactions and place orders based on ICBC quotations. 3. Not restricted by the annual quota of individual FX settlement and sale; customers can, based on their needs, make investment in the foreign exchange market, without using the annual quota of foreign exchange settlement and sale. 4. Multiple choices: many a foreign currencies are available, including the euro, British Pound, Swiss Franc, Australian Dollar, Canadian Dollar, Japanese Yen, New Zealand Dollar, Singapore Dollar, Norwegian Krona, and Swedish Krona. 5. Real-time clearing: The buying/selling of account-based foreign exchange is cleared in a real-time manner and the funds are credited instantaneously to your account. You can buy/sell several times in a day to maximize the use of your investment. 6. Low threshold: The transaction threshold is JPY1,000 for Japanese Yen and the minimal increment is JPY100; the transaction threshold is 100 units and the minimal increment is 10 units for Norwegian Krona and Swedish Krona; for other foreign currencies, the transaction threshold is 10 units and the minimal increment is 1 unit. The ICBC can adjust the transaction threshold and the minimal increment according to actual market situations. 7. Flexible options: You can buy/sell foreign exchange in a real-time manner or place orders, which include profit-taking order, stop-loss order and two-way order.
VII. Qualification You must have ICBC current deposit passbook, ICBC Moneylink Card, Elite Club Account Card or ICBC Wise Gold Card, and sign up for the Internet banking, mobile banking or other e-banking system.
VIII. Application Process ICBC’s personal customers can sign up the service at bank counter or through online banking. Before buying or selling foreign exchange, you should read the Introduction of the ICBC’s Account-based Foreign Exchange Products, follow the ICBC Rules on Account-based Foreign Exchange Transaction and sign the ICBC Agreement on Account-based Foreign Exchange Transaction. You can conduct transactions through online banking after designating an account for the trade.
IX. Service Channels and Business Hours The service is available through online banking from 7:00 a.m. (Monday) to 4:00 a.m. (Saturday). The ICBC may suspend all or part of the service in case of international public holidays, national public holidays, natural disasters or in the event of force majeure. For further information, please visit the ICBC’s portal website (www.icbc.com.cn).
X. Operation Guide 1. Internet banking Log in the online banking, choose account-based foreign exchange, and select corresponding sub-section for operations. 2. Mobile banking Please follow the prompts to proceed. 3. Bank counter Customers can deal with the businesses such as opening or canceling an account, changing the number of mobile phone, or changing the capital account based on their own needs.
XI. Risk Prompt The trading of account-based foreign exchange involves risks such as policy risk, market risk, liquidity risk and operational risk. Prices may swing in real time depending on the international political and economic factors and other emergent events. You should be fully aware of the inherent risks, and bear the investment risks arising from price fluctuations.
XII. Definitions Bid price: The price at which the ICBC buys foreign exchange and the customers sell foreign exchange. Ask price: The price at which the ICBC sells foreign exchange and the customers buy foreign exchange. Mid Price: The price between bid and ask prices. Mid price is calculated through dividing the sum of buying and selling prices by 2. Profit-taking order: An order with pending order price higher than the spot price. In other words, customer's buying price is lower than the bank's ask price or their selling price is higher than the bank's bid price. The order is closed when the market price reaches customers’ prices set in the pending order. Stop-loss order: An order with pending order price lower than the spot price. In other words, customers’ selling price is lower than the bank's bid price or their buying price is higher than the bank's ask price. The order is closed when the market price reaches customers’ price set in the order. Two-way order: An order with a profit-taking order and a stop-loss order. Upon the closing of either one, the other will be annulled automatically. Fund account: Used to account for the receipt and payment of funds for buying or selling the account-based foreign exchange. The regulations of ICBC related to account management shall apply to the account. Trading account: Used to account for the collection and delivery of foreign exchange in the trading of account-based foreign exchange. Mutually independent trading sub-accounts will be set for different varieties of account-based foreign exchange in a trading account, and the balance of recorded amount cannot be added or offset with each other. Margin account: Used to account for the receipt, payment, profit and loss of margin deposits for selling-before-purchasing transactions. The margin account shall be a RMB margin account.
Note: The information provided on this page is for reference only. Concrete business shall be subject to the announcement and provisions of the local outlet.