Dynamic BOC aims to innovate global services

As China's most internationalized and diversified bank, the Bank of China is aiming to innovate its financial services and upgrade its platforms to boost the real economy and the country's foreign trade, said its Chairman Chen Siqing.

"Finance is the core of the modern economy," Chen said.

"Commercial banks should develop innovative services to meet the growing demands of customers under the new framework of reform and opening-up and the country's Belt and Road Initiative," he added.

Such efforts include improving integrated financial services such as cross-border investment, debentures and asset management, as well as upgrading financial services for the yuan, he added.

This year, BOC serves as the chair for the Chinese side of the fifth Meeting of the Business Forum China-Italy, which kicked off on Tuesday in Shanghai. It is an important annual event to deepen economic ties and promote business cooperation between China and Italy.

Co-hosted by the Ministry of Commerce, Italy's Ministry of Economic Development, the Italian company Pirelli and BOC, the forum attracted a total of 200 entrepreneurs from both countries, with many agreements inked to improve investment and collaboration.

According to Chen, BOC will take a holistic approach to the internationalization of the yuan, upgrade tailor-made financial services, and intensify risk management for cross-border transactions.

"Meanwhile, it will foster ties with foreign e-commerce platforms, work more closely with free trade zones and ports, and expand its overseas presence under the Belt and Road Initiative."

To help maintain the renminbi's status - the nation's second-most-used currency for cross-border payments this year and the sixth-largest global payment currency and a world reserve currency - BOC has provided wide-ranging global services by having set up overseas branches in 56 countries and regions, of which 23 are BRI countries.

These services cover a full range of sectors including settlement, financing, bonds, investment, credit loans and wealth management.

BOC is among the first batch of 19 banks approved by the central bank to directly participate in renminbi transactions using the Cross-Border Interbank Payment System.

The system was launched in October 2015 to be a global clearing platform for real-time settlements in the currency. The bank also started a Cross-Border RMB Index in 2013 and Offshore RMB Index in 2014, to help different market players better monitor and understand the process of the renminbi's internationalization.

Statistics show that BOC's cross-border renminbi settlement volumes reached 2.3 trillion yuan ($330.59 billion) in the first five months of this year. On the Chinese mainland, one-third of the total cross-border renminbi trade settlements were done at the bank during the period.

Another way BOC is pushing forward, is by building platforms for small and medium-sized companies to grow.

A senior bank executive said that SMEs are important engines promoting the steady and healthy economic development of countries, and they play a crucial role in creating jobs and scientific and technological innovation; they also drive global trade and investment, he added. The executive said that as an initiative especially created for serving SMEs, the BOC Credit Factory was set up to enhance the bank's services to the companies, providing SMEs with professional and all-round financial services.

The bank says this initiative has to date served over 45,000 clients.

Looking at the whole industrial chain from production to marketing, BOC says it has made great efforts to satisfy the business needs of SMEs, such as financing and securing full protection against bad debts.

To help search by SMEs for solid global partners, BOC has to date held a total of 49 cross-border matchmaking events.

More than 20,000 enterprises from over 80 countries and regions have attended such events - where they share their expertise and sign agreements in fields including high-end manufacturing, environmental protection, information and technology, education, healthcare, modern agriculture, new energy and tourism.

(China Daily 11/06/2018 page9)