New | OCBC targets China business after Wing Hang deal
Singaporean lender looks to develop trade finance for mainland firms expanding into the region by building on local market knowledge
Singapore's Oversea-Chinese Banking Corp has sharpened its focus on developing trade finance for mainland Chinese companies expanding into the region after it completed the US$5 billion acquisition of Wing Hang Bank in Hong Kong last year.
The strategy of providing financing tools and local market knowledge makes good sense as Beijing seeks to create new markets for Chinese products by boosting infrastructure investments in the region.
"The 'one-belt, one-road' policy creates a unique opportunity for our bank as Chinese companies plan to increase their market share and infrastructure investment into Southeast Asia," said Na Wu Beng, the chief executive of OCBC Wing Hang Bank.
The economic "belt" will improve transport links to China's neighbours in Central Asia, while the "road" refers to the maritime Silk Road proposed by President Xi Jinping in 2012 to expand trade ties with Southeast Asia.
Na believes Chinese clients would value OCBC Wing Hang's solid understanding of the Asean markets over its financial flexibility. "Combining our local expertise, business network and bespoke solutions to clients, we have a competitive advantage over China's large banks that have huge balance sheets and access to inexpensive funding," he said.
Beijing has announced plans for US$1.2 trillion in outbound investments over the next 10 years, offering domestic companies a chance to increase their market share abroad.
