First choice
In recent years, BOC has endeavored to become the "first choice" for banking support for companies that have embraced the national strategy of developing global business through overseas initiatives.
As the bank with the highest level of business diversification in the Chinese banking sector, BOC has played to its key strengths in global group management and high-end international experience by introducing a "one-stop" financial planning facility for Chinese companies to move into overseas markets.
Its comprehensive package includes advice and assistance on launching and managing overseas plants, organizing flotations, structuring merger and acquisition deals, monitoring import and export arrangements, undertaking specific projects and managing remote labor forces.
The overseas branches now work closely with their counterparts in a number of the bank's other operating divisions, including BOC International, BOC Investment and BOC Insurance. This ensures the bank can now offer a diversified, professional and integrated cross-border platform of financial service to its business customers.
Last April, as part of its policy of taking a lead in China's drive toward international business, the bank hosted a seminar aimed at Chinese businesses keen to develop their global profile.
The event, staged in Central China's Hunan province, attracted 28 major companies and saw BOC outlining its international financial services package.
Following the seminar, the bank signed cooperation agreements with a number of the attendees, including China Valin, Zoomlion, Sany and the Hunan Nonferrous Metal Holding Group.
Under the terms of the agreement, BOC has undertaken to offer the companies favorable terms on financial arrangements, including extending lines of credit and providing overseas capital management services.
As a result of the seminar, some 10 enterprises entered into 30 different cooperation agreements with various divisions of the bank, most notably BOC (Hong Kong), BOC International, as well as BOC's branches in New York, London, Paris, Milan, Singapore and Sydney. A number of these projects have now been successfully launched.
As a follow-up to the Hunan seminar, the bank hosted a second event, this time in Yunnan province. Entitled: "Based in Yunnan and Going Overseas", the event attracted representatives from some 20 businesses based in the southwestern province.
The occasion allowed the bank to initiate contacts between Yunnan business chiefs and representatives of BOC's branches in cities of Hong Kong SAR, Singapore, Malaysia, Bangkok, Hochiminh City, Jakarta, Canada, Sydney and Zambia. Many of the relationships that began there have since materialized as ongoing business initiatives.
One of BOC's key services for companies looking at overseas expansion is its provision of syndicated loans. This is an area that the bank has vast experience in and one that it is continuing to develop.
BOC has already opened Asia-Pacific, European-African and American syndicated loan centers. These three centers all offer highly experienced staff, rigorous management systems and access to an established inter-bank distribution network.
Enthusiastic uptake of BOC's tailored solutions in the syndicated loan sector has seen its market share rise markedly, allowing it to offer still more competitive terms to its clients.
According to statistics by the end of the third quarter of 2008, the syndicated loan business of the BOC Group secured the number one ranking in the mainland, Hong Kong and Macao markets. It now ranks number four overall in the Asia-Pacific region, excluding Japan.
Charity efforts
Working to develop global market, however, did not mean that BOC staff members working overseas neglected issues closer to home.
After the Sichuan earthquake last May, the bank's overseas branches and their staff members were hugely active in making donations to the earthquake-stricken areas.
In order to ensure swift transfer of international funds raised to alleviate suffering throughout the earthquake zone, many of the branches were quick to open dedicated accounts for donations and provide "green channels" to ensure the rapid transfer of cash to the areas it was most needed. The branches also publicized the relief accounts and waived all transaction fees.
In a bid to maximize relief revenues from overseas Chinese communities and international well-wishers, the bank's branches in New York, London, Paris, Singapore, Bangkok, Sydney and Macao undertook local press campaigns highlighting the issue.
BOC (Hong Kong) became the first contributor to the Hong Kong Red Cross after the earthquake with a total donation of HKUS$154.3 million and 150,000 yuan.
BOC in Hong Kong has a long history of supporting local charitable institutions, including the Hong Kong Red Cross, the Tung Wah Group of Hospitals and Oxfam Hong Kong.
In total, it has collected some HKUS$268 million and transferred more than HKUS$600 million in charitable donations without levying any transaction fees.
Other overseas branches and their staff members contributed nearly US$1.7 million to the earthquake-hit areas and helped transfer overseas donations totaling more than US$10 million.
(China Daily March 9, 2009)
