Legal analysis: 1. Bidding process: Overseas company A opens a foreign currency account in the offshore department of the bank, deposits foreign currency funds or obtains a credit line; Domestic company B (which must be a foreign-funded enterprise) opens a RMB account in a domestic institution of the bank; Domestic institutions of the Bank complete the approval of RMB loan line of domestic company B with the guarantee of offshore standby letter of credit as the guarantee condition; The offshore department of China Merchants Bank will open a standby letter of credit with 100% deposit or credit line in favor of the domestic branch of Company B in the bank. After receiving the above standby letter of credit, the domestic institutions of our bank will issue RMB loans to domestic company B.

2. Business process: an overseas company A submits a standby letter of credit application → the offshore business department of the head office of the bank opens a standby letter of credit → RMB loans from domestic institutions of commercial banks → domestic company B.

Legal basis: Article 3 of the Law of People's Republic of China (PRC) City on Commercial Banks can engage in some or all of the following businesses: (1) Absorbing public deposits; (2) Short-term, medium-term and long-term loans; (3) Handling domestic and international settlement; (4) Handling bill acceptance and discount; (5) Issuing financial bonds. (6) Acting as an agent to issue, honor and underwrite government bonds; (7) buying and selling government bonds and financial bonds; (eight) engaged in interbank lending; (9) Acting as an agent for buying and selling foreign exchange; (ten) engaged in bank card business; (eleven) to provide letter of credit services and guarantees; (12) Agency payment and insurance agency business; (thirteen) to provide safe deposit box services; (14) Other businesses approved by the State Council Banking Regulatory Authority. The business scope shall be stipulated in the articles of association of the commercial bank and reported to the the State Council Banking Regulatory Authority for approval. With the approval of the People's Bank of China, commercial banks can engage in foreign exchange settlement and sale business.