Presented by Christopher Johnson

1. BOC in supporting the Collaboration
Between CN & ZA
Bank of China Durban Branch

2. 1
Agenda
Overview of business collaboration between China and South Africa
BOC in supporting economic collaboration between CN and ZA
Renminbi (RMB) Business

3. 2
Part One

4. 3
Overview of business collaboration between CN & ZA
Chinese investments in South Africa
Highlight on the collaboration for 2015-2016
and upcoming trends
Difficulties and Challenges to Chinese
enterprises (Opportunities for SA companies)

5. 4
Overview of business collaboration between CN & ZA
2010--2015 China's direct investment stock in South
Africa (Unit: million US dollars)
Source: National Bureau of Statistics of the People's Republic of China
Source: Economic and Commercial Counsellor’s Office of the Embassy of the PRC in RSA

6. 5
Overview of business collaboration between CN & ZA
• Impact of SA
low economic
growth rate
• Evolution of
investments, from
traditional mining
move onto multiple
sectors.
• Production
cooperation
developed rapidly
• The comprehensive
strategic partnership
between ZA and CN
stimulates the
collaboration
Highlights Highlights
TrendsTrends

7. 6
Business Sectors Chinese Corporates in SA
Communication ZTE Corporation; HUAWEI Technologies Co. Ltd
Real Estate ZENDAI Group
Home Appliance Hisense South Africa
Agriculture New Hope South Africa (Pty) Ltd
New Energy Goldwind Technology
Mining Sinosteel ASA; JISCO IFMSA
Automotive FAW Automotive; BAIC Motor Corporation; Jiangling Motors;
CRRC Corporation
Finance Bank of China; China Construction Bank; UnionPay
International; China Export and Credit Insurance; China
Development Bank Central African Development Fund
Overview of business collaboration between CN & ZA

8. 7
Overview of business collaboration between CN & ZA
Source: http://businesstech.co.za
Investment barriers to entry -
Professional and technical personnel shortage -
Infrastructure -
Forex exchange -
Social security issues -
Labour relation issues -
- Partnership
- Collaboration
- Currency Swap
- Bilateral Real Economy Development
- RMB as a foreign exchange reserve
- China interbank RMB bond
Challenges
Opportunities

9. 8
Part Two

10. 9
BOC in supporting economic collaboration between CN
& ZA
Commission based & charge free services
Trade related clients
Capital related clients
About BOC

11. 10
Bank of China
2015.07
RMB
CLEARING
BANK
2000
JHB
2015.06
Durban

12. 11
Bank of China Johannesburg

13. 12
BOC in supporting economic collaboration between CN
& ZA
Trade related clients
Import
Outward TT
SPOT / FEC
LC / LG
Factoring
Export
Inward TT
SPOT / FEC
Collection
Bill Purchase
Discounting

14. 13
BOC in supporting economic collaboration between CN
& ZA
Capital related clients
• Working
capital
• Project
finance
• Term loan
• Investmen
t

15. 14
BOC in supporting economic collaboration between CN
& ZA
FEE|NO FEE
TT
outwards
TT
inwards
BOCNET
signup
Cash
in/out
EFT
out
Account
maintenance
Cellphone
Banking
signup
EFT in
Internal
transfer
Statement
printing
Conversion
Individual
TT online
International
Notify me
Worldwide
Network
assistance

16. 15
Part Three

17. RMB-World Payment Currency
Billion RMB
RMB’s share in trade settlement
2010-2014
RMB settlement volume of cross-border
trade and direct investment 2009-2014
On-shore RMB Assets Held by Non-
residents 2013-2015
Trade volume 2009-2014
Billion RMB
●Cross-bonder trade ● direct investment
Billion RMB

18. China’s fast-growing economy drives RMB going global
Globalization of a real economy with sound and advanced financial system
lead to globalization of a currency
 World’s second largest economy
 World’s largest trading nation
Ranking of RMB
Payment - 5th
Trade finance - 2nd
FX trading - 6th CN
Y
0.25% Source: SWIFT
Jan 2012 Oct 2015
44.04%
USD
EUR
GBP
JPY
HKD
CNY
9.00%
2.48%
0.95%
29.73%
#1
#2
#3
#4
#10
#20
1.69%
44.96%
EUR
USD
GBP
JPY
AUD
7.93%
2.79%
27.96%
#1
#2
#3
#4
#5
#7
World Payments Currency Ranking & Market Share
2.76%
CNY
1.88%CAD#6

19. Rapid expansion of the offshore RMB bond market
 Since the first RMB bond in HK in 2007,
The offshore RMB bond market has
developed rapidly
 The most important backbone to
develop this RMB bond market in
Hong Kong is the support from China’s
central government, especially the
Ministry of Finance, state policy banks
and some other major financial
institutions
 RMB sovereign bonds and quasi-
sovereign bonds together account for
more than 30% of total offshore RMB
bond issuance in 2014Source: BOCHK, Bloomberg
Offshore RMB Bonds Issuance and Reserve
(RMB billion)

20. RMB Performance
RMB Performance 4S
Stable increment
in cross-border trade
and direct investment
involvement
Frequent settlement : 6550 bn
ODI settlement : 186.6 bn
FDI settlement : 862 bn
Steady expansion
in acceptance
Offshore market: 1986.7 bn
Out standing loan: 535.1 bn
Deposit in foreign monetary
institutions: 666.7 bn
Significant development
related financial products
Convenient bond issuing by foreign
institutions
simplified foreign exchange control
regulations
Red tape deduction
Successful cooperation
across the globe
33 national monetary institutions in
agreement for currency swap.
Amounting to 3100 bn
20 areas and countries with
established clearing centres

21. RMB Products
Clearing
Bond Issuance
Interbank loan &
deposit
Bulk Salary
Payment
Remittance
Banknotes
Transport/ Delivery
RQFII
Corporate products
ODI/ FDI
Trade Finance

22. Major Services for Public Sector
 Account Opening – for RMB, Rand and USD
 Deposits – competitive interest rates
 Bond Investment Services – in offshore and onshore RMB markets
 RMB Bonds Dealing and Settling Agent Services –in offshore and onshore
RMB markets
 FX/Swap Dealing – one of the active market makers in CNH market
 Banknotes – professional wholesale services for 54 currencies
 Customer Services – dedicated team to follow up central banks’ offshore
and onshore RMB transactions, to provide efficient inquiry services as well
as latest market and policy updates
 Liquidity facilitation –strong liquidity support, and facilitate central bank to
do RMB Swop

23. 22
RMB Settlement
in South Africa
RMB Banknote
Delivering
in Africa
USD/RAND/EURO to RMB
foreign exchange
in South Africa
RMB Salary Remittance
in Africa
First Mover
First bank granted approval from
South African authorities for
Cross-Boarder RMB Business
RMB Bilateral Loan
RMB Guarantee
RMB ODI from South Africa
to Mainland China
RMB Clearing
in Africa
Facilitate FI to invest in China’s
inter-bank Bond Market
RMB FDI from Mainland
China to South Africa
First Mover Advantage
RMB Pre-Paid Card
in Africa
Official RMB Clearing
Bank in Africa
RMB CPIS Clearing in Africa

24. 23
Products Advantage
Liquidity Support
Central bank to invest in China Interbank Market
Financial Institution to issue bonds in offshore Market
CFETS CIBMCLM Member
Have the ability to acquire liquidity support from
multiple channels
Facilitation
Direct CNY to Zar Conduct CNY to ZAR deals to reduce cost
Access to CNY onshore and CNH offshore market
Qualified member of CFETSCIBMCLM

25. 24
Products Advantage
High Efficient Clearing System
24hours non-stopping clearing
Only BOC directly connect to CNAPS
Connect CIPS and CNAPS Clearing System
Clearing for China Union pay in Africa
Diversified Clearing Service
Qualified Banknote Delivery
BOC HK is note-issuing bank
Qualified training for identifying fake RMB

26. Malaysia
Strong Competitive Edge in Cross-Border RMB Business
A Leader in Cross-Border RMB Settlement Volume A Leader in Cross-Border RMB Clearing Volume
Bank of China’s Global RMB Clearing Service Network
Taipei
Macau
Hong Kong
RMB Clearing banks designated by PBOC
Philippines
Cambodia
Other RMB clearing banks
Sydney
Source: Company Financial Reports
(RMB bn) (RMB tn)
 PBOC designated BOCHK, Macau
Branch, Taipei Branch, BOC (Malaysia),
Sydney Branch, Frankfurt Branch Paris
Branch, Hungary Branch, Johannesburg
Branch, Zambia Branch as RMB clearing
banks
 The Bank was also recognized as an
RMB clearing bank in Philippines and
Cambodia
Paris
+33.7%
+86.6%
Frankfurt
Hungary
Zambia
South Africa

27. Main RMB Clearing Channel of Africa
 Bank of China has opened
more 60 financial institutions
RMB clearing accounts in
Africa
 More than 60 financial
intuitions show their
interests in opening RMB
clearing account with us.
 Nearly 20 countries such as
South Africa, Mauritius,
Nigeria, Kenya, Tanzania,
Congo-Kinshasa, Nigeria,
Botswana, Namibia,
Zimbabwe, Ghana, Uganda
Malawi, Seychelles, etc.
●Two central banks, South African Reserve Bank and
Bank of Namibia have opened RMB Clearing Account
with us.
●Provide RMB Banknote to African banks

28. 27
Competitive Price Advantage
Bank of China Johannesburg Branch provides very competitive Prices for
RMB Business, especially compare with USD.
●Foreign Exchange, our specialized financial market department provide a competitive
exchange rate to help you avoid exchange loss .compared with new emerging countries
currency ,even EURO and the other developed countries currency, RMB is still strong
●Remittance, our bank charge little fees
●Banknote delivering, our branch charge free. etc.
Rand India
Rupee
Turkey
Lira
Indonesian
Rupiah
Brail
Raynal
New emerging countries currency to USD CNY to USD

29. Rapid Increase in RMB business
 In 2015, our bank’s RMB Business volume reaches 135.5 billion, including RMB
Clearing ,the year to year increase is 293.9%. On RMB client account opening
aspect, we have more than 1800 RMB clients. The year to year increase is over
20%.
 In 2015, our bank’s RMB clearing volume 89.69billion, South African marketing
in Rmb clearing is 146.5billion, market’s share accounts for 61.2%, and account
for more than 50% of the whole African continent

30. Increasing Impact
 Provide wide RMB investment information
 SARB invest bonds with our facilitation
 Bank of Namibia has opened RMB account with our bank
 Old Mutual complete CNY 210 million RMB FDI though our bank,
which is the first RMB FDI institution in South Africa.
 Ji Dong Development Group invest CNY3billion RMB capitals to
Mamba Cement Company Limited by RMB FDI to South Africa
though Bank of China Johannesburg Branch
 Anglorerand Group invest 150million RMB FDI from China to
South Africa.

31. 30
Contact details
Bank of China Limited Johannesburg Branch
A Licensed Financial Services Provider
FSP No.5444
Web: www.boc.co.za
Johannesburg:
14th–16th Floor, Alice Lane Towers, 15 Alice Lane, Sandton, Johannesburg
P.O. Box 782616, Sandton, 2146. Tel: 27-11-520-9600, Fax: 27-11-520-9699
Email: bocjhb@boc.co.za
Durban:
2nd Floor, 57 Richefond Circle, Ridgeside Office Park, Umhlanga, Durban
P.O. Box 188, Umhlanga Rocks, 4320. Tel: 27-11-669-6800, Fax: 27-11-669-6899
Email: Durban@boc.co.za