Inter-bank E Express, a platform for Bank-Bank cooperation
Inter-bank E Express (Hang-E-Tong) is an inter-bank electronic business system. This system platform，which was endowed with many innovations and able to facilitate banks to make up what they lack, was built by Ping’ an Bank based on many years’ experience in cooperation with other financial institutions as well as a full consideration about extensive room for banks’ cooperation and development in future. The system covers many service fields such as 3rd party custody, precious metal trading, wealth management, foreign exchange trading, and fund consignment, and insurance consignment, etc. Its brand new model of customer, management and system connection brings new experience to customers and the banks in cooperation with us.
Bank-Bank cooperation for 3rd party custody business
Bank-Bank cooperation for 3rd party custody business refers that the Bank cooperates with regional banks which haven’t got 3rd party custody qualifications of securities margin, whereby the Bank opens settlement accounts for such banks’ customers, and handles fund depositing & withdrawal relating to 3rd party custody, during which the Bank fulfills the responsibilities as 3rd party custodian and deals with fund transfer business with the authorized banks.
Underwriting and issuance of bond financing tools
As lead underwriter, joint underwriter or participating distributor, the Bank issues and underwrites debt financing tools including commercial paper (CP), mid-term notes, SMECN, and private placement bonds, etc. for customers in inter-bank bond market by way of agreement based consignment, standby commitment, traditional underwriting, and participation into subscription & distribution, etc., thus to help the customers raise funds with low cost. With the development of debt financing tool market and relevant regulatory policies, we will do variety of product innovation businesses related to debt financing tools/underwriting in future.
In respect of participating in underwriting and distribution, the Bank has established good cooperation relationship with many lead underwriters and has been quite active in this field.
Ping An Jujinbao Business
Jujinbao offers a trading platform for precious metal business of Shanghai Gold Exchange on an agency basis and the predecessor of Ping An Bank – Shenzhen Development Bank – was the first of its kind in offering SHGE customer terminal trading platform in China. Specifically PAB as the member of SHGE offers spot gold/ gold T+D trading access to SHGE for its corporate and individual customers as well as fund clearing, real gold settlement and precious metal T+D business for its individual customers on an agency basis. In real gold business, SHGE lowers the threshold of standard gold bar trading to 100g gross weight where trading and settlement shall not calculate pure weight and customers can take real gold given needs. In T+D business, PAB is leading the industry in gold/ silver T+D businesses which provides a new investment way that consumes less capital. Before trading, customers need to apply for gold account card with SHGE via PAB and can handle real gold trading business through our online banking, phone banking or counter.
Gold lease refers to the business that the bank leases gold to enterprises meeting the requirements and charges them for the lease as stipulated in the contract; on the specified date, enterprises shall return the gold with equal value and identical quality to the bank. Through gold lease business, enterprises are able to:
1.Broaden their financing channels: enterprises lease gold from the bank and then sell the gold; utilizing high liquidity of gold, they can convert gold into cash easily and obtain funds rapidly.
2.Reduce their financing cost: flexible gold lease rate, not restricted by loan rate; the minimum rate may be even lower than floor level of loan interest rate.
3.Reduce risks caused by gold price decline: enterprises can enjoy the premium due to lower price of returned gold than that of leased gold; they can get some yields while the risks of gold price decline are reduced.
4.Not tie up loan position, be convenient without a lot of processes and be able to take delivery of gold at any time.
Commodity price risk management
Commodity price hedging management is a wealth management product customized for customers who are greatly impacted by fluctuation of commodity price. Through personalized design of product nominal amount, product term, target, structure and other elements, this product is able to help customers make use of international commodity trading to avoid commodity price fluctuation risks existing in production or investment activities.
The bank is able to provide diversified commodity price hedging products, of which the target covers spot/forward price, commodity price indices and commodity fund of energy sources, precious metal, basic metal, farm products and chemical products, etc.