On June 13, the Pan-Asia Business Center of Agricultural Bank of China Limited (ABC) was officially established in Kunming. Mr. Li Zhenjiang, Vice President of ABC and Mr. He Duanqi, Governor of Yunnan Province attended the inauguration.
According to the speech of Mr. Li, Yunnan is adjacent to South Asia and Southeast Asia, and shares similar culture and has commercial connections with its neighbors. The Province plays an important role in China-ASEAN FTZ, Great Mekong Subregion Cooperation and Bangladesh-China-India-Myanmar Subregion Cooperation. In 2013, Chinese President Xi Jinping proposed the New Silk Road Economic Belt and 21st Century Maritime Silk Road strategies which were well received by countries along the routes. The "One Belt and One Road" initiative will build up the cultural and economic ties between China and South Asia and Southeast Asia and inject new energy. The Business Center will continue to support the financial reform and opening-up in the border regions and contribute to the commercial and cultural exchanges between China and South Asia and Southeast Asia.
Mr. Li commended ABC's active efforts in border financial services and its leading role in structural layout, product innovation and risk control as well as cooperation with the banking peers of neighboring Vietnam, Laos, Myanmar and Thailand. Via the Business Center, ABC will make use of the geographic advantage of Yunnan to conduct money exchange, build money quotation platforms, open cross-border clearance channels and elevate its cross-border financial service capacity. Therefore, ABC can better serve the "One Belt and One Road" initiative.
The Business Center, emphasizing Direct Access to ASEAN with Pan-Asia Coverage, aims to develop the clearance system on the basis of Yunnan Branch's existing inter-bank transaction accounts and sound cooperation with neighboring countries. In line with BIS standards, the Business Center will also improve clearance efficiency and service level. It provides through institutions designated by Yunnan Branch both domestic and foreign financial institutions with exchange purchase and sales and cash exchange channels for Pan-Asian currencies including VND, MMK, LAK and THB. With such efforts, it will refine the exchange rate mechanism and the channels to cover open position of minor currencies.
In addition to enhancing the cooperation with Pan-Asian financial peers, the Business Center based on product innovation and inter-bank cooperation will expand ABC services to larger customer groups. It will make use of ABC's RMB business strength to support Pan-Asian economy by providing fund support. Besides, it will provide governmental organs and domestic and foreign enterprises consultation services on national policies & laws, enterprise financial status, credit risk management, exchange rate management strategy and overseas investment and M&A information.
At the inauguration, ABC Yunnan Branch signed cooperation agreements with banks from Thailand and Vietnam. Mr. Suchart Liengsaengthong, Consul general of Thailand in Kunming, Zhang Junru, President of ABC Yunnan Branch, Sun Meiyu, General Manager of the Department of International Finance of ABC Head Office and representatives of the consulates general of Vietnam and Myanmar attended the inauguration. The business sub-centers were also established respectively in Hekou, Mohan and Ruili.



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