In order to help entities resist fluctuations in interest rates, exchange rates and markets, SPD Bank launched the "SPDB Hedging" service in 2018 to provide customers with "open, integrated and considerate" financial services.
Over the past six years, SPD Bank has adhered to relying on its leading on-exchange trading capabilities, continuously polished its service professionalism, broadened the connotation of its hedging brand, focused on digitalization and intelligence, innovated its online service model, and served about 2.2 customers in total40,000 households, escorting the high-quality development of the real economy.
Skillfully use exchange rate hedging tools to help enterprises hedge
In recent years, the internationalization of the renminbi has been steadily promoted, the uncertainty of domestic and foreign financial markets has increased, and the exchange rate market has changed. In order to respond to the increasingly refined exchange rate hedging needs of enterprises, SPD Bank has made precise efforts to help customers establish an exchange rate risk management mechanism.
A small enterprise mainly engaged in disposable tableware, plastic cover plates, and sanitary ware, with an annual export volume of about 20 million yuan. The scale of the enterprise is small, and the daily settlement and sale of foreign exchange is mainly carried out on a daily basis, and the profit is greatly affected by exchange rate fluctuations.
After learning about the actual needs of enterprises, SPD Bank took the initiative to connect with them and recommended them to use the bank's electronic platform for foreign exchange trading to customers, "Foreign Exchange e-Alliance". Enterprises can realize forward swap foreign exchange transactions through the platform, as well as trading services such as automatic mark-to-market, real-time valuation, and personalized trading applications, and the whole process of paperless operation, reducing the operating costs of enterprises and improving the convenience of hedging.
SPD Bank's "Foreign Exchange e-Alliance" platform has provided exchange rate hedging for more than 3,000 small, medium and micro enterprises, with a cumulative transaction scale of more than 10 billion US dollars.
We will deeply practice green finance and empower the development of the new energy industry
In recent years, driven by both policies and markets, the domestic new energy vehicle industry has developed rapidly. As the competition in the domestic new energy vehicle market becomes more and more fierce, higher requirements are also put forward for enterprise cost control. In particular, the power battery, which accounts for nearly half of the cost of the whole vehicle, has a direct impact on the operating profit of the company due to the fluctuation of raw materials such as lithium and cobalt. Enterprises are eager to obtain hedging solutions to control procurement costs more granularly.
After learning about the demand for a new energy vehicle, Shanghai Pudong Development Bank quickly docked, and provided forward hedging tools with different pricing methods such as monthly average price and quarterly average price according to the scale and pricing method of the enterprise, which closely followed the actual needs of the operation, effectively helped the enterprise hedge the fluctuation risk of battery metal procurement, and helped the enterprise win the opportunity in the fierce market competition.
Tailor-made derivatives to effectively lock in financing costs
Since the People's Bank of China (PBoC) launched the loan market** interest rate (LPR) in 2019, with the deepening of reform, the demand for institutional customers to hedge interest rate risk has continued to increase. In line with the background of RMB interest rate liberalization, SPD Bank accelerated the expansion of RMB interest rate swap transaction business on behalf of customers.
In August 2023, in the face of large fluctuations in interbank financing costs, a financial leasing company hoped to convert the financing cost of 500 million yuan from a floating 3M SHIBOR interest rate to a fixed interest rate, so as to lock in the basis between the financing cost and the ship leasing income.
After understanding the demands of the enterprise, SPD Bank immediately approached and tailored a 9-month interest rate derivative with a nominal principal of 500 million yuan to help the customer successfully lock in financing costs. As of the end of 2023, the company has saved nearly one million yuan in financing costs.
According to the relevant person in charge of Shanghai Pudong Development Bank, in recent years, the bank's "SPDB hedging" business has undergone a deep transformation from "financing" to "financial intelligence". On January 12, 2024, for the sixth consecutive year, the Bank released the Blue Book of SPDB Hedging Market Outlook (hereinafter referred to as the "Blue Book"), which analyzes and strategically judges the macro economy, fixed income, commodities and performance in 2024, comprehensively demonstrates the opportunities and challenges contained in the financial market, and fully embodies the concept of "SPDB Hedging and Win-win with SPDB".
In the future, SPD Bank will continue to give full play to its financial expertise, continuously improve the service level of "SPDB Hedging", and better serve the high-quality development of the real economy.