ICBC to Support Modern Service Industry
OREANDA-NEWS. December 10, 2013. In recent years, China’s modern service industry has gained momentum as the country deepened transformation of its economic growth model.
In this context, ICBC has stepped up its financial support to modern service sector by leveraging its strengths in capital, product, technology and service network to help improve the competitiveness of modern service enterprises. As of the end of third quarter, 2013, ICBC’s outstanding loan to modern service sector has reached RMB 1.25 trillion , up 15.49% from the beginning of the year, making it the largest bank to do so in China.
DB Logistics, a logistics company based in Shanghai, has a service network of 2000+ direct outlets in China. As early as in 2009 when DB Logistics was still in its early stage of development, ICBC began to provide services to DB Logistics covering door-to-door collection, payroll, cash management, Bank-Enterprise Interlink and POS acceptance. In recent years, ICBC has provided more comprehensive, diversified financial services to support DB Logistics's expansion.
For example, ICBC provided the company with liquidity loan to maintain working capital for its day-to-day operations. ICBC also assisted DB Logistics in issuing SME (small-and-medium enterprises) collective bills as an alternative to raise working capital for buying fixed assets such as vehicles. ICBC also provided project loan for the company’s fixed assets investment for its logistics nodes.
Besides modern logistics sector, modern service companies supported by ICBC have covered various sub-sectors including wholesaling/retailing, commercial services, tourism, leasing, social services, medical and health, education/R&D, information services and software. ICBC's financial support to wholesaling/retailing, commercial services, tourism, and modern logistics has seen rapid growth.
An ICBC official said, modern service industry comprises a wide range of sub-sectors, requiring diversified financial services due to their different characteristics. In light of this, ICBC offers loan services tailored to every sub-sector. Even in the same sub-sector, ICBC's unique offering covers different areas depending on the business characteristics and demands of the borrowers. In addition, ICBC also offers full-spectrum services including investment banking, electronic banking, settlement, cash management, corporate deposit, corporate annuity, bond underwriting, asset custody and personal banking.
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