Bank of China Group (BOC) in Hong Kong, announced in July that it had signed up to Bolero, the electronic trading platform over which international trade can be transacted and administered online.

The second largest banking group in the local market joins a number of banks worldwide - including ABN Amro, HSBC, Chase Manhattan, SocGen and BNP - that have signed up to Bolero.

Milestone

Bolero's chief executive Barry Morse sees the signing of BOC as an "important milestone" in the system's development and says it reinforces his view that it is now "being adopted by all parties in international trade".

Shipping lines - including Cosco, Evergreen and K Line - as well as several multinationals such as Tate & Lyle, Samsung, Hitachi, Otto Versand and Mitsui have also signed up to the system.

Hong Kong consolidation

The announcement of its adoption of Bolero coincides with the moves towards the completion of the merger of BOC Group and the Bank of China (Hong Kong) Limited. The BOC Group is made up of 12 member banks with a total staff of over 17,000. The group plans to transfer the assets and businesses of its existing member banks to Hong Kong registered Po Sang Bank to form the Bank of China (Hong Kong) Limited.

The merger fits with the Hong Kong authorities' policy to support the continued consolidation of the banking sector in Hong Kong, which it says will improve its competitiveness, enhance the systemic stability of the banking system and ensure an appropriate degree of protection for depositors' interest.

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