On April 21, ICBC convened “ICBC Standard Bank Commodity Business & Global Financial Market Business Forum” in Beijing. Delegates of business communities in industries including petroleum and petrochemicals, nonferrous metals, commodity, engineering construction, and experts from ICBC and ICBC Standard Bank PLC (“ICBC Standard Bank” for short) exchanged views on commodity and global financial market business. ICBC President Yi Huiman attended the forum and delivered a speech.

In February 2015, ICBC bought the commodity and global financial market business platform of the London-based South African Standard Bank Group and set up ICBC Standard Bank. As an important part of the Bank’s global service system, ICBC Standard Bank aims to serve global customers and sets up branches in major international financial centers such as London, New York, Dubai, Tokyo, Hong Kong, Singapore and Shanghai, with capabilities to carry out transactions in major global commodity trading markets and capital markets around the clock.

China is currently the world’s biggest commodity consumer and its commodity consumption accounts for around 20% of the world’s total. It relies highly on imports of various commodities. With further fluctuating prices of commodities, it is increasingly necessary for Chinese enterprises to use international capital markets to hedge against price risks. In 2014, China’s foreign direct investment (FDI) in non-financial sectors reached USD 102.9 billion. In the next decade, the country’s FDI scale will reach USD 1.25 trillion. In conducting investment, M&A, and engineering contracting overseas, Chinese enterprises not only need overseas debt financing or equity financing, but also require banks to provide customized exchange rate and interest rate products that meet international transaction rules.

ICBC Standard Bank owns memberships in domestic and overseas exchanges including the London Metal Exchange (LME), the London Platinum and Palladium Market (LPPM), the London Bullion Market Association (LBMA), the London Stock Exchange, the New York Mercantile Exchange (NYMEX), the Tokyo Commodity Exchange (TOCOM), and Shanghai Gold Exchange. It is a major physical commodity supplier and sole distributor of gold, silver, platinum group metals in Dubai, India, China and Southeast Asia and also a leading trader of physical copper, nickel and tin in the world. It can offer exchange rate and interest rate portfolio products in more than 100 currencies, including not only G20 currencies, but also currencies of countries along “One Belt and One Road”, African countries, and major emerging markets in South America. It can provide Chinese customers with services such as sole distribution of commodities like precious metals and base metals, metal leasing and repurchase, foreign exchange trading, exchange rate hedging, interest rate swap etc.

At the forum, business experts from the ICBC Head Office and ICBC Standard Bank had heated discussions with guests from leading enterprises. They exchanged views on issues such as Chinese enterprises’ coping strategies for challenges brought by the volatile commodity market, deep impact on international capital market from Chinese enterprises going global, and how ICBC can help Chinese enterprises avoid commodity market risk through global trading platform and utilize global capital. It is agreed that ICBC Standard Bank’s brand new trading business platform is of great significance to serving Chinese enterprises with faster pace in overseas expansion.

In recent years, ICBC has been committed to becoming the bank of choice for companies going global. By focusing on popular areas for outbound Chinese enterprises, the Bank has built a global network consisting of more than 330 overseas institutions in 41 countries and territories with complete licenses and efficient operation. The Bank’s overseas institutions have covered the regions that account for over 80% of China’s FDI and export, making ICBC a Chinese financial institution with the widest coverage, especially along the “One Belt and One Road” area. ICBC has also leveraged its advantages in global technological platform and multiple licenses of overseas institutions to create ten major cross-border product lines including trade finance, clearing and settlement, corporate banking, cash management, investment banking, global market, and cross-border RMB. Acquiring ICBC Standard Bank is a key step for the Bank to strengthen global service capacity of its trading business line. The Bank will create more value for Chinese customers through its “one-point access” and globally linked “ONE ICBC” service mechanism.