Case One

Problem

A domestic corporate client is doing imports/exports with its trade counterparties mainly distributed in Europe. It hassigned trade contract denominated in USD with the counterparties. As the exchange rate of USD fluctuates sharply, the client and its counterparties have done forward transactions with banks respectively to lock exchange rate and evade exchange rate risk, but have increased financial costs therefore.

BOCOM Service Solution

We suggest the client and its counterparties settle in RMB and take advantage of the policy of RMB settlement supported by denomination in foreign currencies. The two parties agree on a RMB payment amount every time without revising the pricing currency of contracts, and then settlement can be done in RMB, to save the cost of forward transactions and financial costs.

Case Two

Problem

A Chinese company has founded a project company abroad to run contract work. The project company finds itself difcult to gain funding from local banks with its own credit standing and under huge working capital pressure in the course of business operation.

BOCOM Service Solution

We suggest the company, with its excellent track record in BOCOM, ask BOCOM to provide guarantee to the project company for overseas financing. BOCOM issues a RMB financing L/G to an overseas bank. In this way, BOCOM helps the overseas project company get funding from local banks and successfully run contract work.

Case Three

Problem

A foreign-invested enterprise encounters financial difculty at the start-up stage and cannot get sufcient RMB facility with its own credit records and therefore its development plan is in trouble.

BOCOM Service Solution

To make full use of the cross-border RMB business strength, we suggest the company avail itself of the credit resources of its overseas parent company and raise RMB fund /issue RMB bonds on the overseas RMB market. We design a one-stop service solution for the company, including overseas RMB investment banking +cross-border RMB financing +RMB inward remittance.

Case Four

Problem

An overseas subsidiary of a Chinese company plans to purchase ships from China and want to get banking facility in consideration of capital turnover and utilization, but the subsidiary's credit standing abroad is not good enough to obtain mid-/long-term large-sum facility.

BOCOM Service Solution

After analyzing the contract on ship purchase signed by the subsidiary and given consideration to the special nature of shipbuilding industry, We provide legal advice, buyer risk management, credit financing, RMB NRA account and cross-border RMB settlement services based on the characteristics of the ship industry and profile of the two parties.

Case Five

Problem

A company imports raw materials through its subsidiary in Hong Kong. In order to quicken capital turnover, the company wants to settle the payment on an O/A basis. But the overseas exporter doesn't have enough faith in the solvency of the Hong Kong subsidiary, rejects such payment terms and requests settlement by L/C. However, the Hong Kong subsidiary can hardly meet the requirements of local financial institutions and has difculty in opening L/C.

BOCOM Service Solution

A domestic branch, together with Hong Kong branch, designs cross-border RMB back-to-back L/C for this company. The domestic branch opens RMB usance L/C for the company. On the basis of this L/C, BOCOM Hong Kong branch opens L/C for the Hong Kong subsidiary, to meet the settlement requirements of the overseas exporter.