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China : ICBC Provides over USD 100 Billion in Trade Finance Facility to Support Foreign Trade Enterprises.

From this year, ICBC offers more international trade financing and settlement services to support the healthy growth of foreign trade companies, given some of them already have to face declining orders and rising cost. Just during the first seven months of 2012, ICBC ranked No.1 among the peers by providing over USD 100 billion in international trade facility to foreign trade enterprises, covering import documentary bill, L/C finance, export invoice finance, packing loans. Amid the booming bilateral trades between China and emerging market countries, ICBC branches in China and abroad embark joint marketing effort to promote international settlement services and make new breakthrough. At the end of July this year, all ICBC branches posted more than USD 1 trillion in international settlement. Besides securing its top spot in domestic ranking, ICBC becomes one of the top international settlement banks in the world.

To help foreign trade enterprises get though hard times, ICBC branches/subsidiaries and foreign trade enterprises get together to discuss the import/export situation. Depending on their requirements, tailored solutions on international settlement and trade finance are provided with one-stop service encompassing settlement, financing, wealth management and services in home and foreign currency. The solutions are aimed to help them centralize manage liquidity, control exchange rate risk and improve export competitiveness. An example is "Vessel Link", a new ICBC product designed for vessel export enterprises, whose business requires large capital, high-tech and involves complex payment. Based on the conventional trade finance solutions, ICBC provides rollover loan in line with the different stages of ship building, supplemented by forward settlement of different tenors in order to address their difficulty to access bank loans. Another example is the settlement services for Guangdong companies engaged in processing for re-export/import. Given their special requirements and market needs, ICBC launched a new solution designed for close-tied supply chain, which combines international trade service, international trade finance and domestic trade finance supply chain policies. This creative solution provides greater access for core companies and upstream suppliers in processing trade to get loans.

Another focus of ICBC is the export-type small-and-micro enterprises (MSEs). More innovative products and services are offered to support these export MSEs in different ways. Zhejiang Yiwu is the world's largest wholesale market for small commodities. Over 99% companies in Zhejiang Yiwu are MSEs and individual industrial and commercial households doing trading business. A majority of them are small import/export enterprises. Many small foreign-trade enterprises receive a lot of orders.

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Title Annotation:Industrial and Commercial Bank of China Ltd
Publication:Mena Report
Date:Sep 27, 2012
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