On April 28, the Industrial Bank (IB) signed a comprehensive business cooperation agreement with all the associations of Taiwan businesses in Fujian (hereinafter referred to “Taiwan associations”). This is the time that the head office of a nationwide bank has entered into a comprehensive business cooperation agreement with all the associations of Taiwan businesses in the province. It is yet another important move by financial services in support of the “two leading” zone on the west side of the Taiwan Strait.
As a leading financial enterprise in Fujian Province and the only publicly listed nationwide bank based in the region, the Industrial Bank has always been an important force in Fujian for providing Taiwan businesses with financial support. For many years, the bank has regarded serving Taiwan businesses and cross-strait economic and trade exchanges as its mission, and has provided significant financial support for business startups by entrepreneurs and companies in the region with its flexible mechanisms and high quality services. The growth of a number of famous Taiwan businesses like CPT Technologies, Soueast Automobile, Cheng Shin Rubber, Tsannkuen Industry and Uni-president group has been supported by the IB. The first short-term financing bill of a Taiwan business in the mainland, totaling at RMB 1 billion, was also underwritten and issued by IB for Xianglu Petrochemicals. Following years of efforts, “providing services to Taiwan businesses” has become a distinctive feature of the Industrial Bank.
In a new situation under which the current cross-strait relations are progressing favorably and the development of the western strait economic area is well underway, it is a strategic emphasis of the IB in its operations this year to expand its financial services to Taiwan businesses and further extend the scope and level of its participation in the economic and trade cooperation between Fujian and Taiwan, so as to boost the construction of “two leading zone” on the western side of the Straits. This collaboration between IB and the Taiwan associations aims to provide Taiwan businesses in Fujian with better and more comprehensive financial services. It is one of the important steps in implementing the aforementioned strategic thoughts of the bank. The head of Taiwan associations attending the signing ceremony said that Taiwan associations will bring into play their function as a bridge of civil social associations, recommend key member businesses and key projects, new businesses and new businesses to IB, and make efforts to allow IB to obtain access to information concerning businesses in Taiwan. Meanwhile, Taiwan associations will make advantage of their information channels, introduce Taiwan banks and Taiwan-funded banks of strong credit standing and comprehensive business growth to IB and promote their business cooperation. Taiwan-funded businesses will be supported by way of cross-regional cooperation and engagement between banks across the straits.
According to IB, the bank will regard the signing of this agreement as an opportunity to continue its “sincere services” business concept, upgrade its mode of dispersed cooperation with Taiwan-funded businesses and limited service varieties, and devote itself to providing comprehensive, stable and profound financial services. According to the agreement, IB will provide financial support to Taiwan businesses from the following eight aspects:
First, it advocates the service concept of “comprehensively solving various demands”, and provides Taiwan businesses with digital internet-based cash management solutions through innovative cash management products and all-around upgraded marketing management and technical support.
Second, relying on its global agent network, advanced business processing systems, qualified document experts team and effective document processing modes, it will provide Taiwan businesses with professional, convenient and efficient international settlement services and all-around one-stop international trade financing support.
Third, it will capitalize on its market status as a maker of the foreign exchange market, gold market and RMB bond market, a main underwriter of RMB bonds, SHIBOR member, tie-1 trader of public market business and main trader of RMB interest rate swap, IB will provide Taiwan businesses with products and information services pertaining to RMB, foreign currency, gold and bonds on the basis of the monetary market and the capital market.
Fourth, IB will provide Taiwan businesses and their upstream and downstream chains with structurized financial supply chain products, and will speed up the circulation of inventories and receivables to improve the cash flow so that Taiwan businesses can develop their business faster whilst keeping financial costs under control.
Fifth, oriented by the demands of Taiwan-funded businesses, IB will integrate innovations and launch featured financial service solutions, including external-guarantee-internal-loan financing, internal-guarantee-external-loan financing, bonding company guaranteed financing, joint-loan-joint-guarantee financing, creative guaranteed financing etc.
Sixth, as the first “Equator Bank” in China, IB will rely on its leading edge in the field of energy-saving and emissions-reduction project loans to support Taiwan-funded businesses in their demands for energy-saving and emissions-reduction project financing in the processes of energy production, energy transportation, energy utilization and pollution control.
Seventh, integrating advantages in conventional business resources like funds, information and service networks, IB will provide Taiwan-funded businesses with investment bank financing services, including issue of debt-financing instruments, M&A financing service, syndicated loans, structurized financing products and enterprise asset securitization.
Eighth, IB will provide Taiwanese compatriots with all-around and personalized retail banking services including exchange of Taiwan currency, payment settlement, loans and financing, family finance and VIP value-added services.
We learned at the signing ceremony that this year, besides the announcement of allocating dedicated credit of RMB 5 billion to Taiwan-funded businesses, IB has stipulated complete service plans for Taiwan-funded businesses in addition to supporting policies and measures, which will strengthen the guidance of credit extension and involve the granting of more credit to Taiwan-funded businesses. IB will give priority to Taiwan-funded businesses that meet the credit extension policies in the terms of loan size, supporting measures and review and approval procedures, and incorporate Taiwan-funded businesses into the key customer groups of its branches in Fujian. It will take differential strategies, setup green channels, simplify review and approval procedures, and make quick response to the financing demands of Taiwan-funded businesses. As for Taiwan-funded businesses that meet the conditions, IB will also give preference in terms of loan interest rate and accounting rate so as to help them to save on financial costs.
Moreover, IB has ranked Fuzhou, Xiamen, Quanzhou and Zhangzhou, where Taiwan-funded businesses assemble, as the key areas for growth of financial services to small and medium Taiwan-funded businesses. As for the above key areas, the head office of IB requires the local branches to establish small enterprise centers to enlarge support to small and medium Taiwan-funded businesses that meet the conditions for credit extension. After signing this agreement, IB will also choose a suitable time to hold several “Special Introductions to Bank-Business Cooperation” with Taiwan-funded businesses at places such as Fuzhou, Xiamen and Quanzhou so as to boost its comprehensive services to Taiwan-funded businesses.