To The Moon

Recently, Bank Of China Limited (ASX: 601988) successfully completed the world's first batch of foreign currency repurchase transactions using free trade zone offshore bonds as collateral, with the related funds settled through the Shanghai Clearing House in equivalent US dollar form.

This transaction marks the formal inclusion of free trade zone offshore bonds into the category of eligible collateral for foreign currency repurchase.

Free trade zone offshore bonds, formally known as Shanghai Pilot Free Trade Zone offshore bonds, follow the principle of "both ends offshore" at the issuance and investment ends, and are an innovative financing instrument driven by a dual engine of "overseas funds plus Shanghai FTZ Free Trade Accounting Unit (FTU) funds."

The completion of this transaction is a strong practice by Bank Of China Limited (ASX: 601988) in helping to broaden the scope of use of free trade zone offshore bonds and activate the investment and financing functions of the secondary market.

Enriching the Liquidity Management Toolbox

Bank Of China Limited (ASX: 601988) leverages the foreign currency repurchase mechanism to revitalize existing high-quality assets, enabling financial institutions holding free trade zone offshore bonds to flexibly obtain foreign currency funds for financing, greatly enhancing the turnover efficiency and market liquidity of offshore bond assets.

Connecting Full-Chain Comprehensive Financial Services

With the implementation of the repurchase financing scenario, Bank Of China Limited (ASX: 601988) has built a complete service chain covering "issuance, underwriting, custody, trading, and financing" of free trade zone offshore bonds, further strengthening the allocation willingness of overseas institutions and FTU entities, and significantly enhancing the attractiveness of free trade zone offshore bonds to global capital.

In recent years, the issuers of free trade zone offshore bonds have continued to diversify and the investor base has steadily expanded, making them an important pillar in the construction of Shanghai's offshore financial market.

As a main channel bank for cross-border financial services, Bank Of China Limited (ASX: 601988) has pioneered a series of "first transactions," successively completing the world's first RMB-denominated and HKD-denominated free trade zone offshore bonds, the market's first rolling issuance plan for free trade zone offshore bonds, the first "dual-tranche" free trade zone offshore bond, and the first non-financial enterprise free trade zone offshore bond, among other benchmark achievements, continuously promoting the expansion and quality improvement of the free trade zone offshore bond market and injecting strong financial momentum into offshore financial development and the construction of Shanghai as an international financial center.