UOB has strengthened its partnerships with leading Shandong companies to support its expansion efforts in Southeast Asia with the signing of four agreements.
At the 25th meeting of the Singapore-Shandong Business Council (SSBC) held yesterday at Marina Bay Sands, UOB renewed its Memorandum of Understanding (MOU) with Hengfeng Bank Co. Ltd, one of the leading commercial banks in Shandong province, to help more Chinese companies explore cross-border business opportunities in the Southeast Asia. In conjunction with the SSBC meeting, UOB today also signed three new MoUs with Shandong companies to support its internationalization efforts in Southeast Asia.
Shandong is one of the fastest growing Chinese provinces. In 2023, Shandong’s gross domestic product will reach about RMB 9.21 trillion ($1.69 trillion), making it the third largest province in China, behind Guangdong and Jiangsu. Shandong was the first Chinese province to establish a bilateral business council with Singapore in 1993. In 2023, Singapore became the second largest source of foreign direct investment flows for Shandong Province and remains a key trading partner.
The MoU with Hengfeng Bank was signed by Eric Lian, Head of UOB Commercial Banking Group, Peter Foo, President and CEO of UOB China, and Fang Yi, Vice President of Hengfeng Bank Co. Under the renewed MoU , both parties reaffirmed their collaboration in a number of business areas, such as trade finance, investment banking, treasury and wealth management, in order to meet the local and cross-border needs of clients of both parties.
Businesses will be able to access UOB’s full suite of financial solutions, such as cross-border settlement, trade finance and treasury management, for their business expansion. Hengfeng Bank clients will also be able to take advantage of UOB’s Foreign Direct Investment Advisory Unit and obtain market information and support for their overseas expansion.
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Eric Lian, Head of Commercial Banking at UOB Group, said: “We are seeing great interest from companies in Shandong, a key economic province of China, to enter the Southeast Asian market. Our renewed collaboration with Hengfeng Bank and other like-minded partners will enable Chinese companies to take advantage of the region’s growth. We connect large and small businesses through our extensive business network and integrated supply chain platform for cross-border business needs and expansion. “This underlines our commitment and position as a global industry leader in partnering with SMEs.”
UOB and Hengfeng Bank first signed a memorandum of understanding in 2020. This latest MOU is a renewal of both parties’ long-standing relationship to support businesses seeking to enter the Southeast Asia region. This latest MOU is a renewal of both parties’ long-standing relationship to support businesses seeking to enter the Southeast Asia region. In 2020, UOB and Hengfeng Bank launched a one-stop international trade services program to strengthen their collaborations. in trade finance for companies.
As of the end of August 2024, the program has provided approximately RMB 798 million ($147 million) of trade financing to companies.
Building on the strategic partnership between UOB and Hengfeng Bank, UOB today signed three new MoUs with Shandong companies to support its expansion efforts in Southeast Asia. As of August 2024, Southeast Asia has become Shandong’s largest trading partner, with a total bilateral trade volume of RMB 45.71 billion (US$8.39 billion), a year-on-year growth of 10.3%. These Memorandums of Understanding aim to boost foreign investment and trade between Shandong Province and Southeast Asia.
In 2023, Singapore became the second largest source of foreign direct investment flows to Shandong Province and remains a key trading partner.
UOB signed a first tripartite Memorandum of Understanding with Hengfeng Bank and Shandong Port Group Co. Ltd, a state-owned company operating 20 major ports in Shandong province. It has the largest mineral terminals in the world, with 400,000 tons, and crude oil, with 450,000 tons, and is the largest foreign trade port in northern China.
The Bank also signed another tripartite MOU with Hengfeng Bank and Shandong Marine Group. Ltd, a large state-owned company dedicated to the naval industry. The third MOU was signed with Shandong Yulong Petrochemical Co. Ltd, an oil and natural gas refining company.
Through these collaborations with UOB, companies will be able to access an ecosystem of strategic partners through the Bank’s network in Southeast Asia. They will also be able to use UOB’s full suite of local and cross-border solutions, such as trade finance, treasury management, etc.
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