Solidifying its status in the market, Industrial and Commercial Bank of China, China’s biggest bank, said yesterday that its accumulated renminbi clearing account had reached RMB40 trillion ($6.43 trillion), skyrocketing by 1,300 per cent in 2014 year-on-year as demand for transactions in the currency surged.

Solidifying its status in the market, Industrial and Commercial Bank of China, China’s biggest bank, said yesterday that its accumulated renminbi clearing account had reached RMB40 trillion ($6.43 trillion), skyrocketing by 1,300 per cent in 2014 year-on-year as demand for transactions in the currency surged.

ICBC said it has “led the way” in clearing transactions in Singapore from more than 90 institutions across 38 markets. It is the sole renminbi clearing bank for the Asian city-state.

The bank intends to put in place a 24/7 clearing service and a real-time gross settlement system, Zhang Wei Wu, general manager of ICBC’s branch in Singapore, said in a statement.

Lauding its achievements, ICBC said it has been the first bank to launch direct RMB cross-border banknote delivery service from China and the first to launch clearing in the currency via online routes. It said its total renminbi deposit rose by four times and total renminbi asset value rose by five times from levels in 2013. Based on statistics from the Monetary Authority of Singapore, renminbi deposits reached RMB257 billion last year, 31.8 per cent higher from 2013.

Singapore’s status as the largest offshore renminbi hub outside of Hong Kong highlights how financial centres in Asia – and further afield – see the market in the currency and its associated instruments as an important growth area.