The Industrial and Commercial Bank of China now has a fully-owned subsidiary in Mexico.
CCTV America’s Franc Contreras reports from Mexico City.
Chinese banking giant ICBC opens branch in MexicoThe Industrial and Commercial Bank of China now has a fully-owned subsidiary in Mexico. CCTV America’s Franc Contreras reports from Mexico City.
The Industrial and Commercial Bank of China, the ICBC, is the very first Chinese bank to operate in Mexico. The ICBC sees Mexico as a bridge to North, Central and South America, and the move is part of the banking giant’s strategy for global expansion.
The bank’s Chief Executive Officer in Mexico, Yaogan Chen said more and more Chinese companies are seeking financing for business opportunities in Mexico, Latin America’s second largest economy after Brazil.
Trade between Mexico and China is growing. In 2015, it stood at $70 billion dollars, making China Mexico’s second biggest trading partner after the United States. Top investors said the presence of the world’s largest and most profitable bank in Mexico means increased trade opportunities with Asia.
In addition, banking sector observers said the ICBC will reduce exchange rate costs by eliminating third party currency traders in U.S. and Europe.
The ICBC has more than $3.5 trillion in assets, and it is pouring hundreds of millions into Latin America with branches already operating in Argentina, Brazil and Peru.
In Mexico, The ICBC plans to make loans available to the biggest players in Mexico’s energy sector, including the Federal Electric Commission and petroleum giant Pemex.