China's ICBC Tops Global 1,000

China's ICBC tops global 1,000 banks

The Industrial and Commercial Bank of China (ICBC) has topped this year's list of the world's top 1,000 banks in an annual report released by The Banker. The closely watched annual report showed that ICBC moved up from the third spot a year ago to first place this year, trading places with Bank of America. JP Morgan holds on to the second spot. ICBC rose to the top rank after seeing a 15% increase in capital to US$160.6 billon, the survey said, according to Chinese state owned media.

I am looking forward to see how 2013 turns out for Chinese banks, we are feeling some serious rumblings on the ground here.

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China?

Futures and Options Risk Disclosure
Trading futures and options involves the risk of loss. You should consider carefully whether futures or options are appropriate to your financial situation. You must review the customer account agreement and risk disclosure prior to establishing an account. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of futures results. The risk of loss in trading futures or options can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

ICBC seeks to put up Yuan cross-border business hub in Luxembourg

David Nealis President of Ceres Ltd in Switzerland 

ICBC seeks to put up Yuan cross-border business hub in Luxembourg

The Industrial and Commercial Bank of China revealed plans to set up a Yuan cross-border business hub in

Luxembourg that will cover the whole of Europe. Financial Markets Department of ICBC (Europe) Chief Xu Zhi said that in 2012 ICBC (Europe) had a cross-border Yuan trade totaling RMB10.8 Billion (US$ 1.7 Billion), and produced an overall total of RMB 25.9 Billion (US$4.22 Billion) in cross-border deals, according to Chinese State run media.

ICBC to acquire 20% of Taiwan’s SinoPac

ICBC to acquire 20% of Taiwan’s SinoPac

 

The Industrial and Commercial Bank of China (ICBC) announced that it plans to purchase a 20% stake in Taiwan’s Bank SinoPac. The acquisition is worth TWD18.7bn (USD625m). If the plan pushes through, it will be the first mainland Chinese investment in the Taiwanese banking industry. The deal still has to be approved by Taiwan’s banking regulatory office.

ICBC to open up European & American service divisions

David Nealis President of Blue Bridge

ICBC to open up European, American service divisions
Industrial and Commercial Bank of China Ltd. will launch overseas regional cash management centers in 2012 to service Chinese companies and aid their global-market operations.

 In May a center in Europe will be established, with the North American center opening in October. ICBC Vice President Luo Xi said that the amount of ICBC's overseas assets is likely to be more than 5% of the total by the end of this year. There are over 180,000 Chinese investment institutes in 178 countries and regions with direct investment of over RMB 320billion (US$ 51billion) in 2011.

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China?

Futures and Options Risk Disclosure
Trading futures and options involves the risk of loss. You should consider carefully whether futures or options are appropriate to your financial situation. You must review the customer account agreement and risk disclosure prior to establishing an account. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of futures results. The risk of loss in trading futures or options can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Banking Deals Between China and Taiwan

Will the outcome of this weekend’s presidential election in Taiwan affect banking deals between China and Taiwan? 

David Nealis in Taipei Taiwan

Taiwan recently said it would allow Chinese banks to take up to five percent stake in Taiwanese banks, this isn’t exciting economic news but it is very exciting political news. China and Taiwan signed a trade deal in June 2010 that brought access to investment in China’s banking market but due to its political sensitivity it has been are to implement.  

Two of China’s four largest banks, the Industrial and Commercial Bank of China (ICBC) and the China Construction Bank (CCB) are expected to be the first banks to invest in Taiwanese banks. The other two banks, The Bank of Communication and the Bank of China have been given permission by Taiwanese authorities to upgrade their Taiwan offices to bank branches. The Taiwanese bank Nan Financial is bidding to become the first Taiwanese bank to make a direct investment in mainland Chinese bank, by taking a 20 percent stake in Fujian Haixia Bank this will be the first deal will be the first.

With Taiwan’s economy being export dependent, the global economic slowdown may affect corporate demand for lending on the island, an investment by Chinese banks into the Taiwanese banking sector could help during the downturn of the Taiwanese banking sector.