CIMB has signed a Letter of Intent (LOI) with China CITIC Bank to improve financial connectivity between China and the ASEAN region.
The agreement focuses heavily on Malaysia and Indonesia, aiming to support bilateral trade, cross-border financing, and regional investment flows.
The two banks will provide corporate clients with a suite of banking products covering trade transactions, payments, and expansion financing.
The collaboration will draw on China CITIC Bank’s domestic network and CIMB’s operations across Southeast Asia.
A core focus of the partnership is foreign currency and Chinese Yuan Renminbi (RMB) payment and clearing.
This includes potential access to China’s Cross-Border Interbank Payment System (CIPS). It also covers interbank RMB funding arrangements and offshore lending facilities for ASEAN markets.
Beyond direct financing, CIMB and China CITIC Bank will align their head office operations to improve cross-border treasury and cash management.
This includes streamlining account opening and maintenance for local enterprises expanding across the region.
The banks have also committed to mutual client referrals and advisory services to assist businesses with market entry and regulatory requirements.
They will explore collaborating on syndicated loans across global primary and secondary markets.
“As trade, investment and supply chain linkages between China and ASEAN continue to deepen, businesses increasingly require banking partners that can help them navigate both markets,”
said Chu Kok Wei, CEO of Group Wholesale Banking at CIMB.
“By deepening our connectivity into China’s financial ecosystem, we can support clients in accelerating market access, navigating cross-border complexities and realising their regional growth ambitions,”
Chu added.
Featured image credit: Edited by Fintech News Hong Kong, based on image by CIMB
This article first appeared on Fintech News Malaysia