HSBC has become the first foreign bank in China to offer documentary credit (D/C) advising services in partnership with a local Chinese bank.

Bank of Communications (BOC) will make HSBC's ChinaExpress service available to trade customers via its 2,700 offices in 137 cities across mainland China.

Combined network

ChinaExpress will also be available via HSBC's own branches. This means customers in China can access these trade services via the combined networks of the two banks without additional correspondent bank charges.

ChinaExpress is the first trade product to be rolled out jointly by the two banks.

HSBC claims

"ChinaExpress strengthens our position as the leading provider of trade services in Asia-Pacific," says HSBC's head of trade services, Asia-Pacific, Alistair Currie, who adds that ChinaExpress is offered at a single tariff with relatively quick turnaround times.

"HSBC offers a full suite of trade products and solutions in China including import and export services, trade financing, forfaiting, factoring, electronic D/C advising and Internet Trade Services. We also provide expert trade advisory to customers through our team of over 200 dedicated trade staff in the Mainland. ChinaExpress is available to all exporters," says Currie.

Chinese position

HSBC's CEO for China, Richard Yorke, reckons the global banking giant is building a strong trade finance position in mainland China.

"HSBC continues to build on our in-depth local knowledge and long history in the country, and HSBC's export customers will enjoy peace of mind with their export D/Cs being handled by one of the most experienced trade teams in China," he says.

HSBC has operated in mainland China for over 140 years and made its biggest investment in the country in 2004 when it acquired a 19.9 per cent stake in BOC.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.