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BOC Shanghai handles two cross-border transfers of domestic trade financing assets for firms in Lin-gang

en.lgxc.gov.cn| Updated: Apr 2, 2020 L M S

The Shanghai head office of the People's Bank of China announced that the cross-border transfer of domestic trade financing assets in the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone began a trial period on March 31.

On the same day, the Shanghai sub-branch of Bank of China(BOC) contacted the Macao branch and the Tokyo branch of BOC to handle two domestic LC (letter of credit) forfaiting cross-border transfers for two firms in the Lin-gang Special Area – IXM (Shanghai) Corporate Management Company Limited and Rail International Co Ltd.

IXM (Shanghai) Corporate Management Company Limited mainly engages in the wholesale trade of metals and minerals. It has operated in the commodity industry for many years and requires trade financing services.

The enterprise proposed LC forfaiting financing to the Shanghai branch of BOC and stated certain requirements on the price.

In order to meet the enterprise's demand for low-cost capital, the Shanghai branch of BOC mobilized the bank's resources at home and abroad, made inquiries to the overseas institutions of BOC, and quickly facilitated the cross-border asset transfer.

"The policy broadens the financing channels for companies like us in the Lin-gang Special Area, and helps us receive low-cost overseas funds, which came at a perfect time for us during the outbreak," said by an employee of Rail International Co Ltd.

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