BOC Hong Kong (Holdings) has detailed its competitive and co-operative relationships with its parent, Bank of China, in its listing prospectus. According to the document, the bank competes with its parent's indirectly wholly owned unit, BOCI Capital, in Hong Kong's syndicated loan market. 'To the extent that we and BOCI Capital have the same customers, we may compete with BOCI Capital for the role of arranger or manager,' it said, but added that the involvement of the two in one deal could sometimes be complementary to each other's business. The bank also said it had a different customer focus from its parent. 'We believe we have built a broad customer base in this [syndicated loan] market through our commercial banking operations, while BOCI Capital focuses on corporate customers through its investment-banking business,' the prospectus said. Loan magazine Basis Point said BOC Hong Kong (Holdings) was the most active bank in the region on Hong Kong and China syndicated loans in the first half of this year, concluding US$10.69 billion worth of loans. The lender also competes with BOCI Securities in securities trading business. 'We compete with BOCI Securities with respect to taking retail trade orders,' the prospectus said. The bank also indirectly competes with its parent in foreign-currency business on the mainland. The prospectus said it had 14 branches on the mainland, which are treated as foreign bank branches and have a restricted business scope. Only three branches have obtained permission to conduct limited yuan business, while most are only allowed to conduct foreign-currency business. However, most of the branches have applied to the People's Bank of China to raise their operating capital so that they can offer foreign-currency services. 'We may compete with [Bank of China] as we pursue business opportunities in [the mainland],' the document said. The prospectus also said although Bank of China had a branch in the SAR licensed by the Hong Kong Monetary Authority to conduct treasury transactions for institutional clients, it did not plan to engage in direct competition with BOC Hong Kong (Holdings) in commercial banking. On the co-operation front, BOC Hong Kong (Holdings) plans to jointly develop credit-card business with its parent on the mainland, and co-operate with its parent's non-commercial banking subsidiaries and affiliates in Hong Kong on areas such as mutual funds and insurance products.