Nanjing branch of the People's Bank of China, China’s central bank, have issued a directive to allow banks in Singapore to provide renminbi denominated loans to companies located in the SIP, without limiting the annual foreign debt quota of the banks. In addition, there is an expansion in the usage of the loans, allowing companies to entrust loans to their subsidiaries. This has been followed by:

• the announcement that DBS Bank (China) has facilitated one of its customers from Southeast Asia based in Suzhou Industrial Park (SIP) to obtain a renminbi denominated loan from its Singapore headquarters under the new SIP cross-border renminbi transactions initiative. DBS China has also reached agreements with two additonal companies based in the SIP for cross-border renminbi loans. 
• DBS’s Singapore headquarters is currently actively working with companies in the industrial township to prepare for renminbi bonds issuance in Singapore. 
• Standard Chartered have aLSO launched cross-border RMB loans for two clients in SIP 

The new initiative is expected to open up new channels for banks in Singapore to make renminbi investments, further widening the flow of two-way cross-border renminbi transactions between China and Singapore. It will also make renminbi transactions more convenient, increasing the internationalization of the RMB and developing Singapore's offshore renminbi market.