In recent years, Agricultural Bank of China Limited (ABC) continuously stepped up innovation of corporate products and investment banking products, with its product system further enriched and customer service ability improved. While enriching its product varieties, it realized product upgrade through research and development of strategic and platform-type products and augmented market competitiveness.
It's learnt that ABC developed and promoted "San Feng" serial new-type corporate deposit product in the field of corporate deposit, using intellectualized methods to help customer increase deposit benefit. Regarding settlement and cash management, it launched entity settlement cards, bill pools and global cash management products one after another, meeting the increasingly richer demand of enterprises for settlement and financial management. In investment banking, ABC made several breakthrough innovations, issuing perpetual bond for the first time in 2013, being the first to launch the small town innovative financing mode in 2014 and issuing the first credit asset securitization product. In terms of trade finance, it developed multiple products such as inventory financing, invoice financing and future goods right pledge financing, building a relatively complete trade finance product system. Through the TradeManager platform, it realized centralized management over paper and electronic commercial bills across ABC and staged a domestic basic product platform for trade finance under bills and letters of credit. After the cash management system was upgraded, it enriched the functions of such series products as multi-level books, fund collection and bank-enterprise linkage platform.
Besides, ABC launched individualized products and products with regional features for VIP customers and in major fields. To meet the demand of such VIP customers as China Railway Group, China National Petroleum Corporation and Commercial Aircraft Corporation of China, it developed individualized payment and settlement products. In hot fields including supply chain finance and domestic-overseas linkage, several ABC branches deepened innovation in products with local features. They launched Baosteel online supply chain financing, Tewoo e-commerce financing, cross-border RMB loan extension, overseas debts under domestic guarantee etc. The product system with local features was continuously improved.
Since the 18th CPC National Congress, various reform measures in economic and financial sectors have been implemented in an expedited manner. As emerging technologies represented by Internet and big data are developing robustly, commercial banks face five changes in product innovation. The first is constant product innovation focused on exploring customer demand along with continuously deepened financial reform centered on interest rate marketization and RMB internationalization. The second is shift of major fields to direct financing, asset management and transaction banking amid the obvious trend of financial disintermediation. The third is shift of target areas to three major strategic areas as the "One Belt and One Road" initiative and other national strategies create opportunities for banking business. The fourth is shift of basic environment to online and data-based environment amid rapid development of Internet and big data. The fifth is shift of content to supporting overall value improvement of customers as customer demand is constantly upgraded.
Under the new background, ABC will dedicate itself to the core task of building up an excellent comprehensive financial service provider. It will also follow the direction of improving the ability of product innovation in supporting corporate and investment banking business. It will pool resources into major fields and elevate value creation ability and market competitiveness of corporate and investment banking products.
First, ABC will take various measures in response to the challenge of financial disintermediation. It will innovate in and refine debt financing instruments, corporate assets securitization consultancy, private equity consultancy and M&A financing in major fields such as inter-bank bond market, M&A market, equity market and asset securitization.
Second, as for supply chain finance and settlement and cash management, it will gradually develop a transaction banking system, stage an online supply chain financing platform at an early date and develop domestic receivables pool financing products. It will also further refine global cash management and gradually integrate supply chain finance with settlement and cash management from the dimensions of channel, product and industry, to provide customers with one-stop transaction banking service.
Third, ABC will proactively respond to deepening of the financial reform, conduct innovation in market-based pricing of financial products and launch large-sum deposit certificate products in time according to the centralized deployment of central bank. It will also establish the layered pricing mode based on comprehensive contribution or market influence of customers. I addition, ABC will explore market opportunities during "going global" of enterprises and RMB internationalization and enlarge portfolio innovation of risk aversion products and basic products.
Fourth, closely following the development pace of Internet and big data, ABC will set up the Internet financial service system of corporate and investment banking products. It will gradually establish the overall online service framework of credit and investment banking products covering system methods, business procedure and technical platform and develop mobile product manuals. Efforts will be made to seek breakthrough of corporate and investment banking products in mobile finance and realize ice-breaking of data-based innovation regarding money flow of customers.
Fifth, ABC will adapt to the demand of implementation of the three major national strategies, namely "One Belt and One Road", coordinated development of Beijing-Tianjin-Hebei region and Yangtze River Economic Belt. It will also innovate in mid and long-term financing products and services.



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