Citibank (China) Co. has launched its free trade accounting unit (FTU) business in its Shanghai Free Trade Zone (SFTZ) sub-branch.

 

Andrew Au, chairman and chief executive officer of Citi China, said: "The FTU is the cornerstone to deepen the financial reform, further promote financial innovation while effectively control risks. By leveraging Citi’s global resources and advantages, we are well positioned and committed to facilitating the cross-border business of our clients through the FTU, as well as contributing to the ongoing financial reform in China.”

 

With the FT account, Citi’s corporate clients will be able to further save on costs and better manage cross-border risks, through a slew of new services that include cross-border treasury management, investment and fund raising innovations, as well as FX and interest derivatives products.

 

Coinciding with Citi’s FTU launch, the leading industrial manufacturer Danfoss has partnered with Citi in launching its global renminbi settlement centre in the SFTZ. Sue Lee, assistant treasurer of Danfoss corporate treasury, noted: “We plan to settle all the renminbi operational flows in the SFTZ, which will enable us to better utilize the resources both onshore and offshore, as well as more effectively manage the renminbi capital through the FT account and Citi’s global platform.”

 

Since its establishment, Citi’s SFTZ sub-branch has pioneered a number of financial innovations through capitalizing latest regulatory policies in the zone, including the first automated renminbi cross-border sweeping from China to London, and the first automated renminbi and FX cross-border pooling and treasury centre solution.