United Overseas Bank : UOB China sharpens focus on facilitating intra-regional and domestic trade as it expands its China franchisd

China is the largest trading partner of Southeast Asia and in 2013, two-way trade between China and Southeast Asia rose 10.9 per cent to US$444 billion, compared with only US$55 billion in 20021. In the next five years, trade volume between China and Southeast Asia is expected to increase to US$1 trillion2.
According to the UOB Asian Enterprise Survey 20143, four out of 10 Chinese companies are looking at Southeast Asian markets as their next expansion destination. The UOB survey found that Singapore, with its close cultural and traditional ties to China, was the top Southeast Asian expansion destination for
38 per cent of respondents, followed by Vietnam (29 per cent) and Malaysia (26 per cent).
Mr Eric Lian, President and Chief Executive Officer of UOB (China) said "In recognition of China's increasing influence in driving intra-regional trade, and as more companies rely on cross-border financing solutions to do business, UOB is committed to developing more innovative products and services to support our clients' expansion ambitions in China and the region. As part of supporting our clients, we will strengthen our solutions in the areas of trade finance, debt capital financing and equity market financing in particular."
Over the last 12 months, UOB has increased its branch network by 30 per cent to 16 branches and sub- branches. This includes opening its Shanghai (Pilot) Free Trade Zone (FTZ) sub-branch in June 2014. The sub-branch taps on liberalised Renminbi (RMB) policies and product innovation to support its clients' cross-border financing needs.

1 Source - Ministry of Commerce, People's Republic of China

2 Source - Ministry of Commerce, People's Republic of China

3 This survey was conducted by UOB in February and March 2014 among 1,024 Asian enterprises to understand how they view challenges and opportunities in the region, as well as their plans for growth.

Recently, UOB (China) was selected by the People's Bank of China as one of the first six foreign banks with a presence in the FTZ to receive special guidance in order to complete the Separated-ledger Accounting System4. With this system, UOB clients can control and manage their cross-border cash flow and operational capital more effectively.
One such client to utilise the services of UOB's Shanghai (Pilot) FTZ sub-branch is Shanghai Guandong International Container Terminal Co., Limited (Shanghai Guandong). UOB (China) signed an offshore Renmimbi (CNH) 1.5 billion loan agreement with the company to support its business development needs.
Mr Chen Xuyuan, Chairman of the Shanghai International Port Group, the exclusive operator of the world's busiest port, the Shanghai Port, and the parent company of Shanghai Guandong said "UOB's offshore financing is in line with the country's RMB internationalisation policy and can help us reduce financing costs and diversify fund-raising resources."
Apart from cross-border financing solutions, UOB (China) is also making efforts to strengthen its capabilities to help enterprises take advantage of merger and acquisitions opportunities in Asia. It has been building up its RMB-dedicated team which will focus on providing on RMB investment and hedging solutions.
While Chinese businesses are actively "going out" of China, almost 40 per cent of Chinese enterprises surveyed as part of the UOB Asian Enterprise Survey 2014 said they have plans to expand both domestically and regionally5.
"Chinese enterprises are looking for opportunities in and outside China. With UOB's extensive regional network and local market insights, we are well positioned to help our clients to increase their own footprint in China and the rest of Asia," Mr Lian said.

4 Separated-ledger Accounting System allows banks in FTZ to start Free Trade Account (FTA), and FTA could transfer fund freely with overseas accounts, non-residential accounts and other FTA.

5 UOB Asian Enterprise Survey 2014 - China Report

This year marks the 30th anniversary of UOB's operations in China, and during the past five years the bank has achieved double-digit compound annual growth in total revenue. UOB (China) aims to continue this growth trajectory over the next five years.
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United Overseas Bank Limited (UOB) is a leading bank in Asia with a global network of more than 500 offices in 19 countries and territories in Asia Pacific, Western Europe and North America. Since its incorporation in 1935, UOB has grown organically and through a series of strategic acquisitions. In Asia it operates through its branches and representative offices as well as banking subsidiaries in China, Indonesia, Malaysia, the Philippines, Singapore and Thailand.

UOB plays an active role in the community, focusing on the arts, education and children. It has, over more than three decades, held the longest-running art competition in Singapore, the UOB Painting of the Year. In recognition of its contributions to the arts, UOB was conferred the National Arts Council's Distinguished Patron of the Arts Award for the tenth consecutive year in

2014. UOB also encourages its employees across the region to be involved in its regular volunteer activities. This includes the annual UOB Heartbeat Run which is held in Singapore, Malaysia, Indonesia, Thailand and mainland China.

United Overseas Bank (China) (UOB (China)) is a wholly-owned subsidiary of the United Overseas Bank Limited (UOB), a leading bank in Asia. UOB (China) was incorporated in the People's Republic of China on 18 December 2007 and commenced business on 2 January 2008. Our growth in China has been based on a long-term strategic focus which has seen us increase our presence to more than 10 branches and sub-branches in Shanghai, Beijing, Guangzhou, Shenzhen, Xiamen, Chengdu, Shenyang, Tianjin and Hangzhou. UOB (China) currently offers a comprehensive range of foreign and local currency banking products to corporations and individuals, which include deposits, loans, project and trade financing, remittance, guarantees and bills discounting, foreign currency exchange, wealth management and treasury services. For more information, please visit www.UOBchina.com.cn

Jean Khong Kelyn Tan

Group Strategic Communications and Customer Advocacy Group Strategic Communications and Customer Advocacy

Email: mailto:Jean.KhongLY@UOBGroup.comJean.KhongLY@UOBGroup.comEmail: mailto:Kelyn.TanSW@UOBGroup.comKelyn.TanSW@UOBGroup.com

Tel: 6539-3981 Tel: 6539-3967

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