Shanghai Electric Group Company Limited (SEC), China’s power equipment manufacturer, and HSBC Bank (China) Company Limited have entered into an integrated financial services agreement. The agreement will enable SEC to leverage HSBC’s international network and resources in order to facilitate the company’s growth in overseas markets amid the global financial crisis.
Under this agreement, HSBC will provide SEC and its member companies with a global facility limit of US$250 million to meet their financial needs, including but not limited to spot and forward foreign exchange deals, working capital, import and export services. In addition, both parties will further explore opportunities for cooperation in areas such as global cash management, project and export financing, payments and collections, financial advisory and insurance services.
“The ongoing financial crisis poses challenges for corporates but also brings about opportunities. We are confident that we will sustain our growth amid the crisis,” says Xu Jianguo, chairman of the board of Shanghai Electric Group Company Limited. “We are pleased to reach this agreement with HSBC and this partnership well demonstrates the strength of both parties. It will also help enhance our risk management in our overseas expansion.”
Vincent Cheng, Chairman of HSBC Asia-Pacific, said: “We are pleased to enter into this integrated financial services agreement with SEC as tie-ups among industry leaders can help generate more business opportunities in the current market situation. SEC is one of China’s largest mechanical and electrical equipment manufacturers and its internationlisation is proceeding at a quick pace. Through this agreement, HSBC will use our global network and resources to provide SEC with tailored applications and integrated financial support.”
Listed in Hong Kong and Shanghai, SEC’s core business includes the design, manufacture and sale of products, and the provision of related services, in the fields of power generation, electro-mechanical equipment, heavy machinery, transportation and environmental protection. In addition to its home market, SEC has in recent years secured market share in the power equipment sectors of India, Pakistan, Indonesia, and Kazakhstan. The company is also actively exploring other overseas markets including South American countries.
HSBC China is the leading foreign bank in the Mainland with the largest network and service range. HSBC China is a subsidiary of the HSBC Group, which is one of the world’s largest banking and financial services organisations.
D.C.