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Bank of China (BOC)

Debt-capital option lures ICBC unit

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Sandy Li

ICBC (Asia) will seek more business in the debt-capital market because intense competition has sharply hit profit in the mortgage-lending sector.

Managing director Chris Chan sees more attractive underwriting and facility fees from syndicated and wholesale banking loans - both in Hong Kong and on the mainland.

'We can get about a HK$5 million fee from a loan deal [in these markets], which is not bad,' Mr Chan said.

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In the next several months the bank would conclude seven to eight loans.

On the mainland, Mr Chan said, the bank would leverage on the name of its parent - the biggest state-owned bank, Industrial & Commercial Bank of China.

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In order to reduce credit risk, ICBC (Asia) would become selective in lending with priority to Hong Kong blue chips and mainland companies with solid foundations, he said.

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