Treasury Management Internation Logo

Standard Chartered pilots a series of initiatives in FTZs

Published 
  • Strong and timely commitment to the development and construction of the FTZs

21 April 2015 – Standard Chartered Bank (China) Ltd (“Standard Chartered”) has announced a series of initiatives for the construction and development of free trade zones (FTZs), immediately following the launch of three new FTZs in Guangdong, Fujian and Tianjin.

In Fujian FTZ, Standard Chartered successfully completed a cross-border RMB payment for Youda Trade (Fuzhou) Company, Ltd (“Youda”) with its parent company Grobest in Taiwan. This is the Bank’s first cross-border RMB payment for a Taiwanese enterprise in Fujian FTZ. Meanwhile, the Bank received two more cross-border RMB sweeping business mandates from Youda and Xiamen Zhongjiu Trading Company, the sub-company of Likeit International. Once the relevant rules are announced, the Bank will provide cross-border RMB two-way sweeping services to the two companies, which will also mark the first transactions for cross-border RMB two-way sweeping by a foreign bank in Fuzhou and Xiamen.

In Guangdong, as one of the first batch of banks to launch cross-border RMB loans in Qianhai, Standard Chartered completed a series of milestone deals in the zone. In September 2013, Standard Chartered Shenzhen Qianhai Sub-branch commenced operation, bringing a range of comprehensive and quality banking services, including foreign exchange and RMB-related services, to customers in and around the Qianhai zone. In Nansha FTZ, Standard Chartered provides services including trade finance, cash management, financial markets and unsecured business installment loans to clients including multinational companies, local corporates, and small- and medium-sized enterprises. Under the future management and service framework of the FTZ, Standard Chartered will target more clients in the zone and launch new services, including but not limited to warehousing logistics, financial leasing and shipping finance. In addition, the Bank has followed the construction of Hengqin FTZ closely and continuously provides advice on financial innovations in the zone. Standard Chartered will maintain its support of enterprises in the zone and provide first-class financial solutions for their cross-border transactions.

In Tianjin, the Bank actively participated in the construction and development of the FTZ from the start. By working closely with the FTZ management committee, Standard Chartered provides financial solutions to enterprises to help them reduce costs and improve cash management efficiency. In the future, Standard Chartered will take advantage of its network and product innovation to carry out integrated financial services, as well as contribute to the construction of the “One Belt One Road” plan and the synergic development of the Beijing-Tianjin-Hebei Region.

Yesterday, the plan to further deepen the reform and opening-up in the China (Shanghai) Pilot Free Trade Zone was officially announced, that Shanghai PFTZ, which covers 28.78 square kilometres, will add 91.94 square kilometres to encompass a total area of 120.72 square kilometres, including Lujiazui, Zhangjiang and Jinqiao districts. Following the expansion, Standard Chartered’s China head office, Shanghai branch, as well as the sub-branches in the PFTZ and Shanghai Urban Construction International Center, will all be located in the zone to further promote financial reform and product innovation, as well as strengthen business marketing and organizational building, demonstrating the Bank’s determination to support the construction of Shanghai as an international financial centre.

Jerry Zhang, CEO and Executive Vice Chairman of Standard Chartered China, commented, “The launch of the three new FTZs is a significant step towards China’s further economic reform and opening-up, when the country will play a more important role in the increasingly integrated global economy and promote the mutual development of other regions and markets. Standard Chartered is delighted to announce a series of transactions and services, immediately following the launch of the three new FTZs. By leveraging our strong network and financial innovation capabilities, we are leading the way in cross-border RMB business, supported by our proven experience in operating in the Shanghai PFTZ, which we aim to replicate in the new FTZs. Capitalizing on our own unique expertise and capturing the opportunities brought about by the financial innovation in the FTZs, Standard Chartered Bank China is well positioned to provide value-added services to our clients as they venture abroad and contribute to China’s ‘One Belt and One Road’ initiative.”

Besides business expansion, Standard Chartered has been offering guidance on the construction and development of the FTZs. The Bank shares its expertise on cross-border RMB business and the Shanghai FTZ with regulators and local companies, and also advises on the formulation of policies in the FTZs.

Standard Chartered Bank plays an active role in the development of the Shanghai PFTZ. Currently, the Bank has a sub-branch in the zone, providing cross-border RMB sweeping services, cross-border RMB loans, central collection services and support for clients who are setting up new financial leasing companies in the zone. In February 2014, Standard Chartered approved the first cross-border RMB two-way sweeping transaction for Baoxin Group, which helped the Bank receive an award for the Model Business in Innovation from the Shanghai PFTZ Administration. In addition, this transaction also ranked among the highly commended list in Best Cash Management at the Taozhu Gong Awards by Euro Finance.

Most recent episodes

HSBC’s Sibos Spotlight: Investing in the Future – from Diversity to Green Deposits

In the final instalment of HSBC’s Sibos Spotlight, Eleanor Hill (TMI) invites Nadine Lagarmitte and Suraj Kalati (HSBC) to consider how corporates’ attitudes to...

25:12

HSBC’s Sibos Spotlight: The ESG Landscape – what every treasurer needs to know

In the third edition of HSBC’s Sibos Spotlight Podcast series, TMI’s Eleanor Hill invites Farnam Bidgoli (HSBC) to provide an in-depth overview of the current ESG...

16:24

The Path to Transformational Global Cash Visibility

Davina Bradley (CEVA Logistics) and Conor Deegan (CashAnalytics) join TMI’s Eleanor Hill to explore how treasurers can transform their cash visibility and forecasting within their business in a matter of weeks using a...

33:16

HSBC’s Sibos Spotlight: Embedding ESG in Trade and Supply Chains

In the second podcast from HSBC’s Sibos Spotlight series, TMI’s Eleanor Hill speaks to Surath Sengupta (HSBC) about embedding ESG into trade and supply chains....

20:58

Lost in Transaction: Overcoming Payments Pitfalls

From simple errors to duplicates, fraud and sanctions violations, there are a number of areas where payments can go wrong – especially in the real-time environment. In this podcast, TMI speaks to Andrew Ferrao...

34:25

HSBC's Sibos Spotlight: Central Bank Digital Currencies

The first edition of HSBC’s Sibos Spotlight series sees TMI’s Eleanor Hill joined by Mark Williamson and James Pomeroy (HSBC) to discuss the hot topic of Central Bank Digital Currencies (CBDCs). Our guests discuss...

25:48

Payments Vision 2025: The Inside Track

Wim Grosemans, Steven Lenaerts (BNP Paribas) and Wim Raymaekers (SWIFT) join TMI’s Eleanor Hill to outline their vision for the payments landscape in 2025. Our guests consider how recent developments such as instant...

28:21

Stepping Out from the Shadows

“Treasurers needs to step out of the shadows and into the sunshine in terms of their strategic contribution.” claims Zitah McMillan, Co-Founder and CEO, Predictive Black. In this podcast, hosted by TMI’s Eleanor Hill, our guest declares that the...

16:54

Why the ‘One Size Fits All’ Approach is Outdated - A Cash Segmentation Treasury Masterclass

With the ongoing low interest-rate environment and increasing regulatory change, it’s more important than ever for treasurers...

23:55

Instant Payments: Instant Rewards

TMI’s Eleanor Hill sits down in the virtual TreasuryCast studio with J.P. Morgan’s Global Head of Real-Time Payments, Cyrus Bhathawalla, to discuss how treasurers can capitalise on the evolving nature of real-time payments. Our guest contemplates the elements...

23:55