Risk coverage

RMB Interest Rate Swap

Exchange of RMB floating interest and fixed interest between client and bank.

Non-Deliverable Interest Rate Swap

Based on RMB Interest Rate Swap, transaction is agreed on the basis that net settlement will be made in USD, to reflect any differential between the agreed fixed rate and the actual floating rate on the settlement dates.

Foreign Exchange

• Spot

Client and Bank trade at the exchange rate of the same day.

• Forward

Client and Bank agree to exchange certain amount on a pre-agreed date at a fixed exchange rate.

• Optional Forward

Client and Bank agree to exchange certain amount on a future date at a fixed exchange rate. During the life of the transaction, client is entitled to select settlement date.

• Swap

It is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates It allows sums of a certain currency to be used to fund charges designated in another currency without acquiring foreign exchange risk.

• Foreign exchange Options

The parties to the transaction refers to a foreign currency exchange rates, the option buyer will pay a premium to the seller and obtain the right (but not the obligation) to settle in the future for a determined exchange rate (the strike price)

• Interest Rate Swap

Likewise RMB Interest Rate SWAP, client and Bank agree to exchange floating and fixed rate. In this case, client may choose non RMB currency

• Foreign Exchange Interest Rate / Cross Currency Swaptions

Foreign Exchange Interest Rate / Cross Currency Swaption product is an option to enter into a swap. A plain vanilla Interest Rate Swaption is a swaption with underlying swap to pay the fixed rate and receive the floating rate with different currencies or vice versa.

Gold Import

The Bank imports Gold, from overseas, in accordance with the regulation set by Shanghai Gold Exchange.

Gold Agency Trading

It refers to gold transactions conducted by the Bank in the Shanghai Gold Exchange on behalf of the client

The above mentioned are Bank of Shanghai's products