Research On L Branch's Large Steel Company Trade Finance Business Strategy Of Bank Of China

To Bank of China, L Branch, large steel companies have been making a big contribution to its development of trade finance business. In 2014, the non-interest revenue from large steel companies accounted for one third of the whole in L Branch, and the total international trade settlement amount of large steel companies accounted for 28%. For all those years, large steel companies have become the main customers, who have supported the trade finance business blooming of Bank of China, L Branch. However, in recent years, our steel industry has been going through a rough time when all the steel companies are struggling in low benefit management, production capacity control and environment protection. Meantime, China is in a transitionary period of market reform and new policies such as " one belt, one road", building free trade zones and Asian investment bank,silk road fund etc. may save Chinese steel industry from this dilemma. Therefore, in this situation, how to make a practical and special trade finance business strategy for large steel companies can make a significant difference.In the first place, this paper analyses the status of L branch's trade finance business and the importance of large steel companies to its development, then it points out the reasons for the impediment to trade finance business of large steel companies, which include the depression of steel industry, intense competition between commercial banks and increasing trade financing channels for large steel company. At next, combining the presentation of Ansteel group's organization structure, the paper expounds the features of the trade finance business demands of large steel companies, which include specialized demands, low cost financing demands, cross-border financing demands and internet financing demands growing, In the end, according to those features, this paper devises the trade finance business strategy for large steel company and it brings up the business strategy including supply chain finance, domestic and foreign coordinating business and cross-border RMB business, which follows the trends of policy and will lead to good performance.