Bank Acceptance Bill rate tracker
BAB (银行承兑汇票) settles roughly 40 per cent of B2B commerce inside China. For a foreign buyer paying a Chinese supplier in USD, the supplier may then pay their own sub-supplier in BAB; the discount cost shows up somewhere in the FOB price. Understanding which tier of bank issued the BAB tells you how that cost compounds.
Reference indicative ranges. Real rates fluctuate daily and depend on specific issuing bank, bill maturity (3 or 6 months), discounting bank credit appetite, and SHIBOR / LPR conditions. Last refresh 2026-04-30. Verify current rates with your supplier's discounting bank before basing a contract on these.
Reference benchmarks
SHIBOR 3-month
2.32%
As of 2026-04-30
LPR 1-year
3.10%
As of 2026-04-30
Foreign premium
0.5–3.5%
Versus domestic rate
Rates by issuing-bank tier
Tier 1
Big Four + BoCom (国股)
State-owned commercial banks plus Bank of Communications. Total assets above USD 4 trillion each. International branch networks. Globally recognised credit standing.
Domestic discount
1.5–2.8%
Annualised, Chinese counterparty
International discount
2.0–3.5%
Annualised, foreign buyer
Example issuing banks
- · ICBC (Industrial and Commercial Bank of China)
- · CCB (China Construction Bank)
- · ABC (Agricultural Bank of China)
- · BoC (Bank of China)
- · BoCom (Bank of Communications)
BABs from Tier 1 banks discount routinely at major international banks at near-domestic rates. Common foreign-buyer markup of 0.3 to 0.7 percentage points reflects the international bank's margin and FX-conversion-timing buffer.
Tier 2
Joint-stock commercial banks (股份制)
National Chinese reach with limited international presence. Strong domestic credit, increasingly accepted internationally, particularly for the larger members.
Domestic discount
2.2–3.8%
Annualised, Chinese counterparty
International discount
3.0–5.0%
Annualised, foreign buyer
Example issuing banks
- · China Merchants Bank (CMB)
- · Industrial Bank (CIB)
- · Ping An Bank
- · CITIC Bank
- · Minsheng Bank
- · Shanghai Pudong Development Bank (SPDB)
- · China Everbright Bank
- · China Guangfa Bank
- · Hua Xia Bank
- · Postal Savings Bank of China (PSBC)
Tier 2 BABs discount at moderate premium internationally. CMB and Industrial Bank typically achieve near-Tier-1 rates because of their large foreign-bank correspondent relationships. Foreign-buyer markup of 0.8 to 1.5 percentage points is standard.
Tier 3
City commercial banks (城商)
Provincial or sub-provincial reach. Adequate domestic standing; international acceptance varies significantly by individual bank.
Domestic discount
3.0–4.8%
Annualised, Chinese counterparty
International discount
4.5–7.5%
Annualised, foreign buyer
Example issuing banks
- · Bank of Shanghai
- · Bank of Beijing
- · Bank of Ningbo
- · Bank of Nanjing
- · Bank of Hangzhou
- · Approximately 120 other city commercial banks
Tier 3 BABs may require local-Chinese-bank discounting before international acceptance, with effective discount of 5-8% annualised. The typical 3% foreign-buyer markup compounds because each handoff (domestic discount, then international acceptance) takes a margin. International discounting often refused outright; supplier must domestic-discount first then settle in cash.
Tier 4
Rural and township banks (农商 / 村镇)
Rural commercial banks, township and village banks, and other smaller institutions. Local reach. International acceptance limited.
Domestic discount
4.5–7.0%
Annualised, Chinese counterparty
International discount
7.0–12.0%
Annualised, foreign buyer
Example issuing banks
- · Hundreds of rural commercial banks across China
- · Township and village banks
- · Smaller postal-savings cooperatives
Tier 4 BABs are often not accepted internationally without significant credit enhancement. A foreign buyer offered settlement against a Tier 4 BAB should treat it as cash-equivalent only after the supplier converts it via a Tier 1 or Tier 2 bank, and even then with caution. Buyers should not accept a Tier 4 BAB as a primary payment instrument.
How to read these rates
A BAB is a deferred-payment instrument: the issuing bank guarantees payment to the bearer at maturity (typically 3 or 6 months). The bearer can sit on the bill until maturity and collect face value, or discount it now at a discount bank for cash less the discount. The discount is annualised and quoted as a percentage. Lower discount means closer to face value.
For a Chinese supplier paid in BAB by their downstream customer, the supplier's working-capital cost equals the discount they pay to convert the BAB to cash. If the customer's bank is Tier 1, the supplier pays a low rate; if Tier 4, the supplier may not be able to discount internationally at all and faces a 5-8 per cent annualised cost domestically.
For a foreign buyer paying USD T/T to the supplier, the BAB cost is invisible at the surface, the supplier embeds it in the FOB price. Knowing the supplier's downstream BAB exposure lets the foreign buyer estimate how much margin pressure the supplier is under and whether negotiating shorter payment terms (or paying more cash up front against a discount) actually helps the supplier.
Foreign buyers are sometimes asked to accept a BAB as part of payment. The decision rule: a Tier 1 BAB is cash-equivalent through any major bank; Tier 2 is acceptable with a 1-2 per cent annualised premium and a domestic discounting layer; Tier 3 should be converted to cash by the supplier first; Tier 4 should not be accepted as primary payment.
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