Renminbi Fund Operation

Fund Raising

In accordance with Articles of Association of The Export-Import Bank of China, apart from its own capital, China Eximbank mainly raises funds for its credit business from the issuance of financial bonds in domestic capital market. When there is temporary liquidity shortage, the Bank could apply re-loan from the People?s Bank of China (PBOC) or resort to short-term borrowings in inter-bank markets. Currently, the Bank mainly relies on the PBOC Bond Issuance System to conduct paperless issuance of financial bonds. When there is such a deal, underwriters subscribe the bonds by open bidding and then distribute them to sub-underwriters. With close attention on grasping good timing in the markets, the Bank applies a variety of bidding methods and develops suitable products. By this, the Bank works hard to satisfy, both its own fund demands and the investors?requirement for rational treasury operation in the same time.
More information on the bond issuance of China Eximbank could be found at the web site of China Bond Information Network (http: // www. chinabond. com. cn)

Fund Operation

At present, China Eximbank operates its funds mainly through bond (cash and forwarding) transaction, credit borrowing and lending, deposit and bond repurchase. By flexibly applying the above trading products and as based on the market situation and its fund schedule, the Bank manages to ensure its fund supply for credit business, avoid market risks, and reduce losses caused by interest rate and exchange rate differences. Through these measures, the Bank is able to increase its profits from treasury operations while securing a safe flow of its funds.

Foreign Currency Fund Operation

Fund Raising

Apart from the capital fund, the foreign currency fund of China Eximbank mainly comes from fund-raising in both domestic and overseas financial markets. Ever since its establishment, the Bank has been actively exploring effective ways of raising foreign currency funds. So far, the Bank has successfully issued foreign denominated bonds in Japan, Europe and U.S. market, which enables itself to establish wide connection with global investors and set up a good image in international capital markets. Besides, in November 2004, the Bank successfully organized the first onshore syndication that involved both Chinese and foreign banks, making a useful experiment on effectively using forex resources both at home and abroad. The Bank solves short-term liquidity shortage and operates short-term idle money through inter-bank borrowing and lending with both domestic and overseas interbanks.

Fund Operation

The Bank follows the principle of safety, liquidity and profitability in its treasury operations. It manages the assets and liabilities through various financial instruments, such as fund borrowing and lending, forex transactions, bond investment and trading in derivative products. As a result, it has obtained favorable returns and established wide and agreeable relations with financial institutions both at home and abroad.