The introduction of the Suzhou Industrial Park on the local market has also added value to CNY transactions, where firms can operate under liberalised currency rules, business.asiaone.com also reports.
The Monetary Authority of Singapore has released data showing that CNY deposits reached USD 52 billion (CNY 254 billion) in June 2014, up 84% from 2013.
Gary Tan, head of financial markets of Standard Chartered Singapore, has informed that banks can be a middleman for getting funds out of China into the Singapore-based external units. He also adds that through the SIP reform, one can borrow money offshore and transfer it back to China.
Bank of China Singapore said clients have started using CNY standby letters of credit to obtain SGD or USD loans, amounting USD 2.5 billion (SGD 3.1 billion).
ICBC Singapore, meanwhile, has completed CNY 800 million of direct cross-border lending from Singapore to the two pilot areas and the Tianjin Eco-City.
At the end of Q2 2014, DBS Banks CNY deposits, both in Singapore and abroad, had risen 46% from 2013. The bank has also been a big player in underwriting CNY-denominated bonds.
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