ICBC Singapore provides yuan clearing service in Singapore

A YUAN clearing bank in Singapore will see the range of renminbi-denominated product offerings increase, said Monetary Authority of Singapore (MAS) managing director Ravi Menon.

Speaking at the inauguration of Industrial and Commercial Bank of China (ICBC) Singapore's renminbi clearing bank at Shangri-la Hotel on April 2, Mr Menon noted that the yuan clearing bank will be an important channel for yuan liquidity to circulate between Singapore and China, and that Singapore's deep and liquid capital markets will be able to support the region's renminbi financing needs.

He said: "We have already seen companies here issuing RMB-denominated bonds.

"There will also be strong and growing demand for RMB trade services. There is a critical mass of international trading companies based in Singapore that will demand such services."

China's central bank, the People's Bank of China authorised ICBC Singapore as a yuan-clearing bank in February. It is the first yuan-clearing bank outside of Greater China, which ICBC chairman Mr Jiang Jianqing said is a significant step in the internationalisation of the Chinese yuan.