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ICBC Cements Cooperation with Finance Companies to Stabilize Industry Chain and Supply Chain

“As a producer of new-type monitors and components, we need to purchase production equipment from foreign suppliers. When our project was still under construction, we encountered difficulties in issuing letters of credit (L/Cs). Informed of this, ICBC worked closely with our parent company to figure out a solution that the L/Cs were issued by the finance company affiliated to our group on our behalf. With the financing needs met in time, our supply chain managed to operate smoothly. ” said the person in charge of a semiconductor display technology company based in Shenzhen.

The collaboration discussed in the above case, is an innovative and effective service model that ICBC has launched by cooperating with the finance companies of corporate groups to satisfy the business development needs raised by core Chinese enterprises, the upstream and downstream industries involved, as well as the supply chain. In recent years, ICBC has forged a comprehensive product supply system based on the needs of finance companies, covering ten major service scenarios, namely fund collection, deposit, financing, foreign exchange, bill, inter-bank market, entrustment, credit asset transfer, bond underwriting and issuance, and supply chain-based finance. As of the end of September 2020, ICBC had served the finance companies of more than 200 corporate groups in various industries, such as aeronautics & astronautics, petrochemical engineering, ferrous metallurgy, energy and power, transportation, culture and media, and consumption. By offering the timely funding support, the Bank has given a great boost to the business development of these corporate groups as well as the upstream and downstream industries involved.

Given that the finance companies of corporate groups lie at different stages of business lifecycle, ICBC has created a sophisticated service system to help them enhance capital operation efficiency and comprehensive competitiveness. For the finance companies under preparation, the Bank renders them with a diversity of consulting services, covering business, risk control, management, and technical development, with a view to facilitate their start-up. As to those at the beginning of business, a period when they focus on fund collection and internal financing among intra-group members, ICBC offers a full package of solutions consisting of inter-bank deposits, corporate wealth management, syndicated loans, credit asset transfers, and acceptance bills, etc.. When the finance companies and their groups grow mature, ICBC, giving full play to its advantages in comprehensive business operations, provides them with investment and financing services, integrating loan, bond, stock, agency, leasing, and advisory services. In this process, the Bank boosts the stability and sustainability of the supply chain and industry chain, and improves the quality and efficiency of serving the real economy.