OREANDA-NEWS. February 05, 2013. Following the signing ceremony held by The People’s Bank of China (“PBOC”) Shenzhen Central Sub-branch, The Bank of East Asia (“BEA”) announced that it has entered into a strategic co-operation agreement to extend its first cross-border Renminbi (“RMB”) loan to an enterprise in Qianhai, Shenzhen. Incorporated in the new Qianhai Development Zone, the Mainland enterprise is engaged in the logistics industry, which has been highlighted by the Chinese government as one of four important industries to develop, reported the press-centre of BEA. 

BEA’s RMB cross-border loan has already been approved by the relevant authorities, and successfully drawn by the Bank’s Qianhai customer.

This transaction comes after the release of the Provisional Administrative Rules by the PBOC Shenzhen Central Sub-branch on 27th December, 2012 under the Overall Development Plan on Hong Kong / Shenzhen Co-operation on Modern Service Industries in Qianhai Area. Details of the rules on the implementation were also announced by the PBOC Shenzhen Central Sub-branch earlier this month.

According to the Provisional Administrative Rules, Qianhai-incorporated Mainland enterprises that also operate or invest in the development zone, are now permitted to borrow RMB directly from banks in Hong Kong for the construction and development of Qianhai. The loan terms are determined between the borrowers and the banks.

Dr. David K.P. Li, Chairman & Chief Executive of BEA, said, “BEA’s RMB trade finance business has grown rapidly in the past few years. Following the recent announcement of the implementation details on lending to Qianhai enterprises, we will focus on expanding our RMB cross-border lending business. The Bank will also dedicate more resources to helping its Mainland corporate customers grow their businesses in Qianhai.”

Located to the west of the Shenzhen Special Economic Zone, Qianhai has been selected by the Central Government as a pilot region to be transformed into a modern service industry hub for the long-term and mutually beneficial economic development of both Hong Kong and Shenzhen.

The liberalisation measures will not only help promote the development of the off-shore RMB market in Hong Kong, but also enhance the innovation of the financial services industry in the Qianhai area. BEA helps corporate clients expand their businesses by offering flexible and tailormade packages that suit individual requirements and financial objectives. BEA’s comprehensive corporate and commercial banking services include corporate loans, project financing, bank guarantees and standby letters of credit, trade finance, machinery finance, the SME Loan Guarantee Scheme, the SME Financing Guarantee Scheme, Corporate Cyberbanking, MPF, and general insurance services.

For more information on BEA’s corporate banking services, please call (852) 2211 1338, or visit any BEA branch or the Bank’s homepage at www.hkbea.com.