What are the main needs of Chinese-funded enterprises to "go global" and what opportunities do banks have?

Opportunities and challenges faced by commercial banks in "going out"

(A) the main opportunities faced by commercial banks under the "going out" project

1. The external environment is favorable for commercial banks to "go global". Globally, with the economic recovery of developed countries and the development needs of emerging economies, the demand for infrastructure in relevant countries has greatly increased, especially in more than 60 countries along the Belt and Road, and quite a few underdeveloped countries have weak infrastructure such as transportation, energy and telecommunications, which provides objective conditions for China enterprises to "go global". Domestically, the state has issued a series of policies to support "going global", and constantly creates opportunities for "going global" with the help of China's economic strength and international influence. And domestic enterprises in related industries already have strong brand value and market competitiveness. Judging from the sources of funds for overseas projects, due to the financial crisis and debt crisis in recent years, construction funds in many countries are very limited, and there is a huge demand for foreign investment and financing. In this way, Chinese-funded commercial banks, which have risen rapidly in the economic crisis, have become the most important force to accompany and support Chinese-funded enterprises to "go global" besides state-owned policy banks, laying the foundation for commercial banks' own business expansion and structural adjustment.

2. The overseas layout of China's commercial banks has developed rapidly, and its structural advantages are constantly reflected. In recent years, China's commercial banks have seized the opportunity to accelerate the construction of overseas institutions. With the increasing efforts of China enterprises to "go global", the advantages of international layout of China commercial banks will be constantly revealed, and the internationalization process will be further accelerated. Take ICBC as an example. By the end of 20 14, China Industrial and Commercial Bank had launched financial services in 59 countries, and set up 338 overseas branches in 4 1 countries and regions, including 120 branches in 8 countries along the Belt and Road Initiative. And as the single largest shareholder, it has participated in Standard Bank of South Africa, thus achieving financial coverage in Africa 18 countries and becoming a Chinese-funded financial institution with the widest network coverage in the world; The correspondent bank network covers 1809 banks in 47 countries and regions, and has initially established a global business network spanning six continents: Asia, Africa, Europe, North America, South America and Australia.

3. The "going out" credit business provides a new way for state-owned commercial banks to transfer production capacity and reduces the risk of credit assets of commercial banks. With China's economy entering a new normal, traditional industries such as steel, cement, electrolytic aluminum, photovoltaic, flat glass and so on have overcapacity. It has become an important means for domestic enterprises to "go global", contract projects in overseas markets, conduct mergers and acquisitions, invest in factories, export basic materials and export large-scale mechanical and electrical equipment. In order to expand the market and ease the pressure on domestic production capacity. For state-owned banks, as enterprises "go out", they provide credit and related business support for overseas projects, which reduces the credit supply of domestic enterprises with rich production capacity, realizes the transfer of rich production capacity of enterprises, reduces the risk of credit assets of state-owned commercial banks, and provides a new way for bank-enterprise cooperation.

(2) The Belt and Road Initiative has brought both challenges and opportunities to commercial banks.

1, national risks need to be vigilant. In the post-financial crisis era, although the economies of various countries are generally developing in a good direction, the change of political parties, political turmoil and other factors often have an impact on enterprises operating in their own countries. In particular, most countries in the "Belt and Road" are underdeveloped countries, and the state power has hidden dangers to some extent. The ruling ability of the ruling party, the influence of the opposition party and the succession will directly or indirectly affect the safety of overseas assets of commercial banks. In addition, although China enterprises have considerable "going global" experience, most of their businesses existed in Asia, Africa and Latin America before, and the participation of developed regions in Europe and America was not high. With the increase of "going out", enterprises are unfamiliar with the business habits and legal environment of foreign emerging markets, which will have a great impact on their own projects and business development. Once commercial banks provide supporting financing for enterprise projects, the risk of subsequent loan default will be difficult to avoid, and the security of bank assets will face severe challenges. The recent breach of contract of the China Construction Bahamas Resort project has sounded the alarm for the safety of commercial banks' overseas operations. 2. Lack of internal and external linkage makes it difficult to implement risk prevention and control of "going out" projects. Although the construction of overseas branches of China's commercial banks is accelerating, it is difficult for overseas branches to become the main body to support overseas projects of Chinese enterprises due to the limitation of capital, capital cost and local laws and regulations. At present, overseas project financing of domestic sub-branch enterprises is still the main means for commercial banks to support enterprises to "go global". Due to the lack of understanding of local laws and regulations, market environment and the business operation of domestic branches, it is difficult to conduct a comprehensive and detailed preliminary investigation of overseas projects without the support of local institutions, and the lack of direct support from local institutions will bring serious problems to the supervision and management during the business period, and it is difficult to ensure the safety of overseas assets of commercial banks.

3. The demand of enterprises for comprehensive services is gradually emerging. With the acceleration of the "going out" of China enterprises, many domestic high-quality enterprises are no longer simply engaged in overseas contracted projects, equipment export and other businesses, and it has become a new choice for many enterprises to enter the market and participate in market investment. At present, some domestic large-scale equipment export enterprises and raw material export enterprises invest in factories while exporting equipment and materials to meet the local government's requirements for localized production when competing for overseas projects. At the same time, more Jian 'an enterprises are facing the situation of capital construction and joint investment. As a commercial bank, how to support the traditional export credit business and project loan business while solving the problems of enterprise's own financing, risk control and exit mechanism will be a new challenge for commercial banks, and also put forward higher requirements for their financial service capabilities.

4. The gap of international talents needs to be filled. Most commercial banks in China are mainly engaged in domestic business, and domestic business talents have obvious advantages. However, with the continuous expansion of China's commercial banks' overseas markets, the diversity of financial services needs has not deepened. They have rich overseas business experience, are familiar with the politics, economy, laws, regulations and business conditions of various countries, and are extremely short of talents who understand the supporting financial markets. At present, most commercial banks are mainly engaged in domestic credit personnel to carry out overseas project financing business. They can only rely on credit institutions, consulting institutions and law firms to understand the overseas situation, but they can't get the support of their own internal institutions. Moreover, due to the professionalism of domestic business, it is difficult to connect with overseas markets and provide customers with a package of comprehensive services. At present, only the Industrial and Commercial Bank of China has a department responsible for overseas investment and financing. How to tap, cultivate and attract outstanding overseas talents will be a big problem that restricts the development of commercial banks.