Bank of China furthers ties, business with US

After 30 years, its New York branch has become oldest and largest China-based finance institution

Bank of China moved back into the United States market in 1981 when it reopened its New York branch, which was set up in 1936.

After more than 30 years of development, Bank of China's New York branch, or BOC-NYB, has grown to become the oldest and largest China-based bank in the US. By the end of last year, BOC-NYB had become the 13th largest foreign-funded bank by assets in the US. Its international settlement business accounted for about 20 percent of the Sino-US trade volume.

Since 2011, its US dollar clearing business has maintained a top 10 ranking. Its syndicated loan business was ranked 21st, one of the only three Asian banks among the top 21, and the only Chinese bank in that category.

Today, BOC-NYB is playing an increasingly important role as a "bridge" in China-US economic and trade ties.

Major financier

As more Chinese enterprises invest in the US, Bank of China is actively providing comprehensive financial services for Chinese companies to expand overseas and enter the US market. By the end of June, BOC-NYB had provided $7.4 billion of financing. This included $4.9 billion for overseas mergers and acquisitions, and $2.5 billion for overseas businesses.

Through close cooperation between its China and US branches, Bank of China has successfully facilitated a series of major deals. These included Shuanghui Group's acquisition of Smithfield Foods, Goodbaby International Holding Ltd's buyout of Evenflo Co Inc, a manufacturer of children's products, and Fosun International Ltd's 20 percent stake in Ironshore Inc, an insurance company in the US.

In addition, Bank of China has expanded its US presence, establishing close ties with the world's top 500 companies, such as General Electric, Hewlett-Packard Co, Boeing Co and Honeywell International Inc, as well as helping US-based companies enter the Chinese market.

BOC-NYB's American Syndicated Loan Center has also acted on behalf of the bank's head office to conduct business in the Americas region. It has substantially increased the efficiency of business development and achieved excellent results.

Promoting yuan business

Based on its global network, BOC-NYB has engaged in the offshore and onshore yuan financial market, and participated in the establishment of the offshore yuan sector.

As early as 2010, BOC-NYB entered the cross-border yuan settlement business, becoming the first bank in the US to do so. Last year, its cross-border yuan settlement business reached 63.4 billion yuan. In the first half of this year, the amount of trade financing conducted by the bank put BOC-NYB in the top spot. It is also the first Chinese bank in the US to become a member of the Factors Chain International, a global network of leading commercial financial companies.

Other achievements have included BOC-NYB's qualification as a direct custodian of US Federal Reserve Treasuries, or government bonds, and institutional debt. The bank ranked No. 1 in the US investment-grade syndicated loan market as a lead arranger among all Chinese lenders.

It is also the only Chinese bank that has received approval from the Chicago Mercantile Exchange to issue standby letters of credit for its floor trading. The trading center of the BOC-NYB is one of the three global trading centers within Bank of China, with a "strong market maker and financing ability" in terms of the yuan against other major currencies.

'Bridge' for trade

In March, BOC-NYB was elected as president of the China General Chamber of Commerce-USA. Founded in 2005, the Chamber of Commerce spans six regions throughout the country. It has seven professional committees and covers finance, energy and chemicals, automotive, trade, transportation and logistics, information, real estate, and other industries. There are almost 2,000 registered members.

Chinese companies have a presence in 44 US states. Last year, they invested $5.2 billion, while accumulated investment that topped $40 billion. In the first half of this year, investment increased 35.8 percent compared to the same period in 2014.

As a representative in the US, the Chamber of Commerce has been serving Chinese companies by maintaining their legitimate rights and interests, while promoting Sino-US economic cooperation. As president of the organization, BOC-NYB has worked as a "bridge" to cement Sino-US economic, trade and business ties. By doing this, it has provided more comprehensive and efficient financial services to Chinese institutions in the country. Part of that remit is to expand cooperation between Chinese and American enterprises.

Rooted in community

The "80/20 Housing Program" was designed by the New York state government to encourage developers to rent at least 20 percent of their units to low-income groups. Developers taking part were offered tax-exempt financing through bond issuance by New York State Housing Finance Agency.

HFA had to find financial institutions to provide credit enhancement to the bonds issued. In June, BOC-NYB provided credit enhancement for the second time, with a total value of nearly $800 million. This in turn has contributed to the improvement of low-income groups' living conditions.

BOC-NYB has also actively participated in Sino-US cultural, economic and trade, and academic exchanges. In May, it became the exclusive sponsor of the sixth George H. W. Bush China-US Relation Conference with the theme of "Global Infectious Diseases: Preparation and Response" in Houston. The event showed Bank of China's relentless effort in taking on social responsibility.

BOC-NYB has always been an enthusiastic participant in US regional economic development by cooperating with major business associations. It has joined the Greater Houston Partnership, San Francisco Bay Area Council and the Los Angeles Area Chamber of Commerce. As a member of these organizations, BOC-NYB actively participates in business activities and by doing so, expands its influence.

(China Daily 09/23/2015 page12)