Jan 12, 2011 - All-China Federation of Industry & Commerce (ACFIC) and ICBC today signed the strategic partnership agreement at the Beijing Great Hall of the People. The partnership is to search for the new possibilities for the fullest development of financial services for the private business in China, and to elevate the standard of financial services for small-and-medium enterprises (SME) and private business owners. The Agreement states that ACFIC and ICBC will bolster stable cooperation nationwide and leverage of each partner's unique strength to support the development of small-and-medium enterprises and private sector.

Speaking at the signing ceremony were Huang Mengfu, the Vice Chairman of CPPCC and Chairman of ACFIC, Vice Chairman Zhou Mubing of China Banking Regulatory Commission and ICBC Chairman Jiang Jianqing. Guests to witness the signing ceremony were Quan Zhezhu, the Deputy Head of the United Front Work Department of CPC Central Committee and Party Secretary and First Vice Chairman of ACFIC, Lu Zhiqiang, the Vice Chairman of ACFIC, Zheng Yuewen, Vice Chairman of ACFIC and ICBC Senior Executive Vice President Zhang Hongli. The new Agreement was signed by Vice Chairman Sun Anmin of ACFIC and ICBC Executive Director and Senior Vice President Li Xiaopeng. The ceremony was packed with 100+ guests: Leaders from state ministries and commissions, private entrepreneurs, industry association representatives, senior officials of ACFIC, ICBC Leaders, and reporters from news media and publications.

In his speech, Chairman Huang Mengfu stated that SME development is a worldwide problem. In China, SME development is also crucial to the growth of Chinese economy. Without the healthy growth of SMEs, it will be impossible to achieve fundamental change to the growth pattern of China's economy, or to achieve the common goal of prosperity of all. The conclusion of the strategic partnership between ACFIC and ICBC is an important measure of ICBC to fulfill business expansion and structural optimization, also vividly reflects the rich services of ACFIC for its corporate members. The conclusion of the partnership agreement by both sides enables a new platform for three parties (bank, enterprises, chamber of commerce) to leverage each partner's strength to deliver innovative products and service options/models，through information sharing and combined resources. The new platform will definitely create positive and far-reaching impact to drive the growth of China's private sector and SME，and further contribute to delivering the change of their growth models. ACFIC will also play an active role for local ACFIC to work with ICBC subsidiaries across the country.

Private sector is one important force to drive China's economy and social development, said Vice Chairman Zhou Mubing in his speech. Giving priority to private sector, especially the development of small-and-medium private business, is fundamental to maintain stable, relatively fast growth of national economy and a strategic mission closely related to the people's livelihood and social stability. ACFIC and ICBC, represent an association gathering the widest number of privately held companies and private business owners on one side, and the largest and most distinguished commercial bank in China on the other. Both sides setting up nationwide financial service platform for three parties (bank, enterprises, chamber of commerce) is a good endeavor to elevate the standard of financial services to the private sector, especially the SME, and support private sector development.

Chairman Jiang Jianqing said in his speech that vast number and thriving SMEs are a principal driving force in private sector. For years ICBC remains committed to supporting the economic development of private sector. Improving and strengthening financial services to the small and mid corporate segment is a long-term development strategy of ICBC. China's gathering pace in economic transformation and restructuring adds impetus to the SMEs and private business owners to demand diversified and tailored financial services. To ICBC, delivery of financial services in a timely and efficient manner for them is a social responsibility, as well as an internal requirement of the Bank to speed up business transformation, restructuring and sustain growth. The conclusion of ACFIC-ICBC agreement is a good beginning for two parties to look ahead and brace for challenges. The agreement takes the relation of ACFIC and ICBC to a milestone level, opening a new chapter for two parties complement each other, chasing win-win scenario and achieving harmonious growth. Chairman Jiang Jianqing also stated that ICBC is taking the conclusion of this agreement as the opportunity to combine ICBC strength and resources in a bid to provide financial support and services to private sector, especially SMEs.

Industry insiders comment on the launch of a financial service platform by ACFIC and ICBC for three parties (bank, enterprises, chamber of commerce) through the signing of this strategic partnership agreement. Through the platform, ACFIC as the organization for its members can recommend top-class private enterprises and individual customers to ICBC and its subsidiaries across the country. ICBC, on the other side, will provide financial services best suited to the customers referred by the ACFIC. ICBC will also leverage its financial strength, vast network and IT expertise to offer all-inclusive financial services to private business clients including credit facility, cash management, electronic banking, annuity, investment banking, private banking and credit card. Both parties will strengthen cooperation in credit facility business and create innovative practices and mechanism in extending credit to private business. ICBC will adhere to the national industry policy and lending practices of commercial banks to release more loans to private enterprises, increase their credit line, launch more innovative loan products, offer more services and enhance service quality. The focus is on the delivery of innovative credit facility services to SMEs while increasing lending to large private enterprises.

As related, after the restructuring and going public, and the experience in weathering the global financial crisis, ICBC has come out strong indicated by its rising international status, market competitiveness and influence. ICBC is now the most profitable listed bank in the world with the largest market capitalization, largest customer deposits balance and most valuable brand. In recent years ICBC has placed more emphasis on the financial services to SMEs and private business owners, a good beginning for SMEs to achieve win-win with commercial bank, create benefits to the community and economy as well. By the end of the 2010, 460,000 small-and-medium enterprises have received ICBC loans. ICBC balance of SME loans went beyond RMB 3 trillion. Over 60% of new loans in 2010 were loans to SMEs. During the 5-year period from 2006 to 2010, ICBC loans to small business increased around RMB 70 billion every year in average, or 40% annual growth rate and 25 percentage points (approx) higher than the average growth rate of loans to corporate clients in the same period. Looking ahead, ICBC will push ahead its services to small enterprises in a scalable, commercial and sustainable fashion. During the "12th Five-Year" period, ICBC plans to maintain the annual average growth of loans to small businesses at around RMB 140 billion. Balance of loans to small businesses is estimated to reach RMB 1100 billion (approx) by the end of 2015.