OCBC Bank deepens alliance with Bank of Shanghai to capture rising Belt and Road opportunities
(Seated, R-L) CEO of OCBC Wing Hang China, Ms Kng Hwee Tin, and Vice President of Bank of Shanghai, Mr Huang Tao, inked the second Memorandum of Understanding (MOU) between OCBC Bank and Bank of Singapore in Shanghai this morning. Group CEO of OCBC Bank Mr Samuel Tsien pictured here (standing between Ms Kng and Mr Huang) witnessed the signing. OCBC Wing Hang China is OCBC Bank’s key platform for capturing in-market and cross-border opportunities in China. In the same event, Bank of Shanghai inked a separate MOU with Banco Santander to support Chinese businesses venturing into Europe under the Belt and Road initiative. Other witnesses at the signing were senior bank executives from Banco Santander and Bank of Shanghai.
Singapore, 2 April 2018 – OCBC Bank signed its second Memorandum of Understanding (MOU) with Bank of Shanghai this morning, deepening its partnership with the Chinese bank. The signing took place at Bank of Shanghai’s Belt and Road Cross Border Collaboration Seminar showcasing business opportunities related to the Belt and Road initiative in Southeast Asia, attended by more than 100 corporates. As Bank of Shanghai does not have a presence in Southeast Asia which is one of the top investment destinations for Chinese companies making forays overseas, OCBC Bank is now poised to be their strategic choice for collaboration in the market.
Present at the signing ceremony in Shanghai were OCBC Bank's Group CEO Samuel Tsien, OCBC Wing Hang China's CEO Kng Hwee Tin, Bank of Shanghai's Chairman Jin Yu, Bank of Shanghai's President, Hu Youlian. Other attendees included government dignitaries from Singapore and China, officials working for various agencies from the two countries, and senior bank executives.
Results of a 2016 survey by law firm Herbert Smith Freehills showed that acquisitive Chinese corporations considered Southeast Asia their top destination for investment over the next three years – with Malaysia, Singapore and Indonesia topping the list. Many Chinese players typically prefer to partner local entities in their efforts to navigate this diverse market.
With today’s signing of its second partnership agreement with Bank of Shanghai, OCBC Bank strengthens its position as a key partner of choice for Chinese enterprises expanding into Southeast Asia.
The partnership offers Bank of Shanghai corporate clients access to OCBC's comprehensive suite of funding and risk management solutions, deep experience in Southeast Asia and extensive network comprising more than 600 branches and offices across 18 countries and regions. Corporates looking for opportunities in infrastructure development can tap on OCBC Bank's project financing capabilities, regional insights and broad ecosystem of government and private sector agencies, business associations, and professional service providers.
Under the agreement, OCBC Bank and Bank of Shanghai will leverage each other’s strengths, networks and platforms to support customers in their Belt and Road expansion plans. Apart from sharing knowledge and resources, exploring joint business and talent development opportunities, and strengthening risk management capabilities, the banks will collaborate closely to provide clients with trade finance, corporate banking, treasury, and investment banking solutions tailored to their cross-border needs.
In the same event, Bank of Shanghai inked a separate MOU with Banco Santander to support Chinese businesses venturing into Europe under the Belt and Road initiative.
Mr Samuel Tsien, Group CEO of OCBC Bank, said: "Southeast Asia, which is along the 21st Century Maritime Silk Road, is a strategic economic corridor at the heart of China’s Belt and Road initiative. It is attractive to the many Chinese corporates looking to expand overseas, not least because it is also home to a large diaspora of ethnic Chinese who share the same culture, values and ancestry. OCBC’s home market, Singapore, is a global financial centre and an important regional gateway for trade, capital and investment flows from across the world. On the other hand, Spain, where Banco Santander is headquartered, is a key logistical hub that links Europe, North of Africa and Latin America. Singapore and Spain are strategic nodes along the Maritime Silk Road and the Silk Road Economic Belt. The collective strength of Bank of Shanghai, Banco Santander and OCBC, especially our combined networks and franchises, can effectively attract and engage Chinese enterprises that are both "Going Out" and "Coming In". I believe the value that our collaboration can create for our customers across China, Southeast Asia and Europe will be tremendous and unique."
About OCBC Bank and Bank of Shanghai’s first MOU
In April 2017, OCBC Bank and Bank of Shanghai signed their first MOU at the 3rd Singapore-Shanghai Financial Forum, jointly organised by the Monetary Authority of Singapore and the Shanghai Financial Services Office. The agreement facilitates the two banks’ collaboration across a range of business areas including trade finance, corporate and investment banking, treasury, settlement, loans and cross-border financing to support the in-market and cross-border needs of each other’s customers. Both banks are cooperating to harness mutual competitive strengths, build capabilities and explore joint business opportunities including making customer and business referrals to each other.
About OCBC Bank’s presence in China
OCBC Bank first established a presence in China in 1925 with the opening of a branch in Xiamen. Since then, it has been operating without interruption in the country for more than 90 years. In August 2007, the Bank incorporated a local entity in China, OCBC Bank (China) Limited ("OCBC China").
Following its successful acquisition of Wing Hang Bank in Hong Kong in July 2014, OCBC Bank merged its two banking subsidiaries in China – OCBC China and Wing Hang China – to form OCBC Wing Hang China. OCBC Wing Hang China has a registered capital of RMB5 billion and is a wholly-owned subsidiary of OCBC Wing Hang in Hong Kong, which is itself 100% owned by OCBC Bank. OCBC Wing Hang China is present in 27 locations in China through its headquarters, branches and sub-branches that span 14 major cities across Northern and Southern China – Shanghai, Beijing, Shenzhen, Guangzhou, Zhuhai, Foshan, Huizhou, Xiamen, Tianjin, Chengdu, Chongqing, Qingdao, Shaoxing and Suzhou.
OCBC Wing Hang China’s corporate headquarters, OCBC Bank Tower, is located in the Pudong district of Shanghai. OCBC Bank was the first Singapore bank to operate and own a headquarters building in China when it unveiled OCBC Bank Tower in September 2013. The building is the Bank’s largest fixed asset investment in the country.
About Bank of Shanghai
Bank of Shanghai is the second-largest city commercial bank in China by assets and has a network of more than 300 branches in the Pearl River Delta, the Bohai Rim, the Yangtze River Delta and key cities in the central and western regions. Formed in December 1995, it was one of the first city commercial banks established in China and was successfully listed on the Shanghai Stock Exchange in November 2016. Apart from its franchise in China, its overseas presence is represented by its wholly-owned subsidiary in Hong Kong, Bank of Shanghai (Hong Kong) Co Ltd.