ICBC NZ milestones
ICBC’s head office, like China itself, has a very long-term vision and wants the New Zealand subsidiary likewise to have a longterm vision.
“This means we are keen to back New Zealand companies which see themselves as being here for the longterm,” says Karen Hou, ICBC New Zealand’s chief executive.
“Surviving in the long-term is not easy in today’s fast-changing world, but New Zealand provides a stable environment which encourages companies to plan for the long-term.”
Hou says though local banks are good at local business, ICBC’s advantage is that it spans both New Zealand and China. “We want to provide support to help businesses bridge the distance between China and New Zealand, and support locals to do more.”
ICBC NZ has received an additional US$60 million capital injection from the bank’s head office. At the time of the exchange, this equated to NZ$88.08m — an exchange rate coincidence, as the number eight has long been regarded the luckiest number in Chinese culture.
The capital injection required approval from the China Banking and Insurance Regulatory Commission (CBIRC), which is tasked with guarding against finance risk, as well as opening up the banking and insurance sectors to enhance their efficiency.
The 19th National Congress of the CPC and the Central Economic Work Conference highlighted that “improving economic growth” is an important focus of China’s macro policy in 2018. In light of this requirement, China is maintaining a prudent, neutral and somewhat tight monetary policy.
This new funding — approved by ICBC at a time where the global trade and investment environment has been subdued — is a strong signal of the bank’s commitment to the local market, and a demonstration of the confidence the Chinese government has with New Zealand.
As at March 31, 2018 — prior to the new capital — ICBC NZ had total assets of NZ$1.64 billion, total liabilities of $1.50b, and a loan volume of $1.43b.
Hou says the bank has strong capability in global infrastructure — the bank is present in 18 countries along the Belt and Road, loaning US$78.6b (NZ$113b) against 288 projects.
New Zealand is at one end of the Belt and Road’s economic corridor, which stretches from the South Pacific through Southeast Asia and into Europe. Hou says the additional capital will allow the bank to further invest in local infrastructure projects.
ICBC NZ has invested across a range of industry sectors — including financing support to the banking syndication for Wellington’s Transmission Gully motorway, key infrastructure in