MY COUNTRY

During the past 24 years when China implemented reforms and opened itself to the outside world, it has developed well with rapid growth of import and export at a high average rate of 16.7%, especially as of the year of China’s access to the World Trade Organization (WTO). Such accession to WTO, achieved in 2001, is providing major impetus to continued reforms including further financial reforms. We rejoice when we see the reforms in the securities market, in the foreign exchange market as a result of of the government's new initiative in reforming the financial sector. Meanwhile, China’s banks are quickening their steps in reforming their management systems in a bid to establish a modern banking system that can meet the sharp challenges and competitions from foreign banks. For example, China is pursuing a plan to turn the Big Four state-owned commercial banks into joint-stock companies and eventually list them on foreign stock exchanges At present, Bank of China and China Construction Bank have successfully completed their transition to joint-stock companies. As part of this endeavor, China has been trying to invite strategic investors from overseas to help improve the managerial efficiency of the state-owned banks. It goes without saying that China’s banks are now making the best of opportunity and challenge at the central stage of international economy.

Talking of the LC market in China, here we now find several structured trade financing products, such forfaiting, factoring, receivable purchasing, silent confirmation, export credit insurance , working well to the satisfaction of traders as users and bankers as suppliers. In my views it is just the result of giving up some traditional ways of management and adopting advanced business ideas in line with international practice under the competitive pressure from foreign banks. As to acquisition of LC management expertise, China has also achieved its goal well by introducing and organizing various seminars and workshops held by world famous experts. China is obtaining more and more foreign investments with more and more favorable investment environment for the investors from all over the world..

MY BANK

Bank of China (BOC) has been a specialized foreign exchange bank until 1994, which was the only bank in China for handling foreign exchange operations and international banking business, actively supporting China’s foreign trade to a great extent. In 1994, BOC embarked on a transformation from a specialized bank to a wider based state-owned commercial bank. In August 2004, BOC has successfully completed its transition to a joint-stock company with a further aim of being listed on stock market.

BOC has many "Firsts" in the Chinese banking industry; for instance, in :

1980, BOC became the first bank in China to provide export seller's credit;
1992, BOC launched the first international factoring service in China;
1997, BOC offered Renminbi forward purchases and sales for foreign exchange - the first bank to do so in China;
2002, BOC Hong Kong (Holdings) was successfully listed on the Hong Kong Stock Exchange. The USD2.8 billion offering was over-subscribed by 7.5 times. The deal was a landmark in the development of the Bank of China and a significant move in the reform of China's banking industry.
 

In addition, BOC's earnings have been the best amongst its Chinese peers. BOC has been included in the Fortune Global 500 for 13 consecutive years, starting from 1989. Between 1992 and 2002, BOC was awarded nine times "the Best Domestic Bank" by Euromoney (the Best Bank in China in 2001).

In particular, BOC is the leading bank in China with a large source of LC professionals and specialists, among whom Vice President of BOC, Mrs. Zhang Yanling, is the best example as a distinguished LC and trade finance expert. She is also vice chairman of ICC Banking Commission playing an important role in the world banking community. BOC’s such acquisition of LC dispute management expertise is attributed to its well established training program system as well as rich experience in the LC and trade finance operations.


MY ROLE


Frankly speaking, my role is minor now. As a trade financing product manager, I deal with documentary credit and collection operations, promote appropriate financing products to customers, and occasionally provide my comments on some LC disputes and cases. But I hope in the future I may do more in facilitating understanding of LC practices, rules and regulations, and may comment on and help solve more controversial LC disputes with greater utilization of my knowledge and expertise. I do not tend to assume a big role but instead to play an important role with my enthusiasm and knowledge for the business development of my bank, for the economic development of my country - China.