On October 10, ICBC published the ICBC Action Plan of Financial Support for the Integrated Development in the Yangtze River Delta, planning to provide additional investment of RMB2 trillion in the next five years, and full support for the high-quality integrated development in this area. Participants of this event were Gu Shu, ICBC President, Wu Qing, member of Shanghai Municipal Standing Committee and Vice Mayor, Hu Hao, ICBC Vice President, Zhang Dongqiang, Deputy Director of the Department of Regional Economy under the National Development and Reform Commission, Kuang Xiaohong, Vice Inspector of Research Bureau, People’s Bank of China, relevant officers from Zhejiang, Jiangsu and Anhui provinces and Shanghai of the Yangtze River Delta Cooperation Office, key enterprises such as China State Railway Group, financial institutions in the factor market such as Shanghai Futures Exchange, and representatives from dozens of companies in the Delta. 

Gu Shu, ICBC President, stated in his speech that deep engagement in the Yangtze River Delta integration process and full support for its high-quality development are important embodiment of the concerted efforts in complementary and high-quality development of regional economic planning. It is also the mission for ICBC to shoulder its responsibility as a major bank to serve regional economic and social development. ICBC is currently providing all-around financial services for 140 million individual customers and 2.2 million corporate customers in the Delta. Its loan balance in this area exceeded RMB3.3 trillion, accumulated investment in local government bonds amounted to RMB635.7 billion, both ranking No.1 in the market. ICBC will actively play its leading role as a major bank in serving local economic development, and will provide premium and efficient financial services for the investment and construction of major projects, the development of micro and small enterprises and private companies, and the improvement of social and livelihood issues.

Wu Qing, member of Shanghai Municipal Standing Committee and Vice Mayor indicated that, as the largest and the most influential commercial bank in the world, ICBC has made great operational achievement and significant contributions for regional economic and social development in the Yangtze River Delta and Shanghai, thanks to its  outstanding corporate culture, robust business concept, and extraordinary financial services. ICBC is expected to make new process in deeply engaging into the national strategy of the Yangtze River Delta integrated development.

Hu Hao, ICBC Vice President released the ICBC Action Plan of Financial Support for the Integrated Development in the Yangtze River Delta (thereafter as “12345” Action Plan), planning to set up a new branch in Shanghai Pilot Free Trade Zone, grant additional financing of RMB2 trillion, to build three business centers (Financial Innovation Center, Cross-border Business Center and Financial Trade Market Center). According to the plan, the bank will focus on four specific customer groups, namely enterprises, individuals, institutions and sci-tech enterprises, and provide financial services in five areas, namely concerted innovation in industrial systems, infrastructure interconnection, coordinated protection of ecological environment, accessibility and convenience of public services, and improved coordination and openness.

At the event, ICBC signed strategic cooperation agreements on integrated development in the Yangtze River Delta with six key state-owned enterprises, namely China State Railway Group, China Unicom Group, China Eastern Airlines Group, China COSCO Shipping Group, China Commercial Aircraft Group, and China State Shipbuilding Group, in order to build “Yangtze River Delta on rail-tracks” and “Digital Yangtze River Delta”, interconnected infrastructure and world-class manufacturing cluster. ICBC also signed strategic cooperation agreements with seven institutions in factor market, that is Shanghai Futures Exchange, Shanghai Financial Futures Exchange, Shanghai Clearing House CO., Ltd, Shanghai Commercial Paper Exchange Co., Ltd, China Trust Registration Co., Ltd, Shanghai Insurance Exchange Co., Ltd, Shanghai United Assets and Equity Exchange, as well as 14 leading companies in Shanghai, Zhejiang, Jiangsu, Anhui, Ningbo and Suzhou, to promote high-quality integrated development in the area. 

Previously, ICBC has set up over 3,000 branches in the Yangtze River Delta, including three departments under the Head Office (Precious Metal Business Department, Private Banking Department and ICBC Bills Discounting Department), specialized institutions such as Transaction Banking Center, Remote Banking Center and Internet Financing Center, and such subsidiaries as ICBC-AXA and ICBC Investment. ICBC also set up Head-Office-level Financial Service Center for Sci-tech Enterprises and six specialized branches tailored for new markets in the Yangtze River Delta, in order to coordinate system building of innovative industries. 

News Background: Interpretation of the ICBC Action Plan of Financial Support for the Integrated Development in the Yangtze River Delta

The ICBC Action Plan of Financial Support for the Integrated Development in the Yangtze River Delta (thereafter “12345” Action Plan) aims to set up a new branch in the Yangtze River Delta, input additional financing of RMB2 trillion, build three business centers, focus on four specific customer groups, and provide services in five key areas.

I.Set up a New Branch in Shanghai Pilot Free Trade Zone

In order to deeply engage in the national strategy of Yangtze River Delta integrated development, and actively respond to the appeal of “establishing China (Shanghai) Pilot Free Trade Zone in Lingang Area, and to build a special economic zone that abides by international rules and has its influence and competitiveness in the international market”, ICBC plans to set up a new branch in Shanghai Pilot Free Trade Zone to meet the demand for financial services, which include providing special cross-border financial services of clearing, investment and financing for the Free Trade Zone, and facilitating the convenience of cross-border trade, and investment & financing in this new zone.

II. Additional Investment of RMB 2 trillion in the Yangtze River Delta

In the next five years, ICBC is going to invest an additional financing of RMB 2 trillion in the Yangtze River Delta, in order to provide all kinds of customers of “large, middle and small companies”, with “on-and-off balance sheet” products, “online and offline” channels, “debt + equity” market, and “domestic + overseas” financing services for the high-quality integrated development of the Delta.

III. Establish Three Business Centers in Shanghai

As ICBC’s financial innovation “think tank”, financial service platform for sci-tech innovation enterprises, and financial and technological service platform, the Financial Innovation Center aims to make forward-looking financial innovation explorations in integrated services, cross-border financing, capital market and financial technology, and to provide life-cycle financial services for sci-tech innovation enterprises in the Yangtze River Delta. With the help of smart government cooperation system and “integrated online and offline service” channels, it is going to make full use of ICBC’s technical service capabilities, to promote system interconnection and data aggregation and sharing, and facilitate the building of smart city and smart government in Shanghai.

Cross-border Business Center is ICBC’s on-and-off balance sheet credit assets registration and exchange center for domestic and overseas institutions. It strives to build “offshore+” financial service supporting system, provide a new type of “onshore-cross border-offshore” financial services, such as cross-border international clearing, cross-border cash pool, cross-border trade financing, cross-border supply chain financing, cross-border transaction banking, cross-border investment and financing.

Financial Market Trade Center is going to be built into ICBC’s remote backup center for financial market business, and a Shanghai-based regional financial market trade center that covers the Yangtze River Delta. At the same time, as ICBC’s offshore RMB trade head office in the Free Trade Zone, the Center provides supporting financial market trade services for cross-border and offshore business, offers key market players of factor market and financial institutions with trade debt, assets and trade aggregation services, and comprehensively serves the financial infrastructure field with Shanghai financial market trade, cross-border capital settlement, etc.

IV. Focus on Four Exclusive Customer Groups

As to corporate customers, ICBC is going to take advantage of its full banking license operations, and provide integrated financing services of “loan + bond + stock + agency + lease + consultant”; establish “financing + collective wisdom” financial service system for private enterprises, and offer micro and small enterprises with fast online services such as “fast online mortgage” and “fast operation mortgage”, to improve the service of inclusive finance. As to individual customers, ICBC will provide smart services such as smart account, AI adviser, and smart adviser; provide solutions including ICBC e-Wallet based on six scenarios (livelihood, internet, payment management, membership management, consumer financing, quasi security deposit) in order to establish the new trend of online business. As to institutional customers, ICBC plans to provide innovative services by setting up specialized institutions, establishing exclusive systems and providing special products.

V. Serve Five Key Areas

ICBC plans to provide financial services in five areas, namely concerted innovation in industrial systems, infrastructure interconnection, coordinated protection of ecological environment, accessibility and convenience of public services, and improved coordination and openness; offer innovative, coordinated, green, livelihood and cross-border financial services; fully support upgrading of traditional industries, transfer of advantageous industries; establish “Yangzi River Delta on rail-tracks”, “Digital Yangzi River Delta” and “Happy Yangzi River Delta”; and strengthen the innovation of cross-border financing, and help building Shanghai into an international finance center.