Foreign-funded banks support Shanghai's enterprises amid epidemic
Source: Xinhua | 2022-05-28
Amid the latest resurgence of COVID-19, foreign-funded banks in Shanghai have provided various financial services to enterprises and helped them raise capital and hedge risks.
Considering the impact of COVID-19 on the automobile industry, Bank of Tokyo-Mitsubishi UFJ (China) engaged in five asset-backed securities (ABS) transactions to raise capital for companies in the auto industry, underwriting 400 million yuan (about 59 million U.S. dollars) and buying 600 million yuan of ABS in April, said Chen Shile, head of the capital market department of the bank.
Global banks in Shanghai have also helped foreign trade companies hedge the risks of exchange rate volatility. For a client importing iron ore using U.S. dollars, BNP Paribas (China) proposed a hedging plan for payments worth 30 million dollars.
Although the yuan depreciated against the U.S. dollar, the forward exchange contract guaranteed stable income and expectations for the enterprise, said Zhang Dafan, a senior expert of the bank.
United Overseas Bank (China) Limited has facilitated qualified enterprises in cross-border Chinese renminbi settlements during the period to help them avoid trade risks associated with exchange rate fluctuations.
The bank has said it will continue to provide one-stop financial services for Chinese and global enterprises and integrate business networks with ASEAN.