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HSBC offers global credit to Shanghai Electric

HSBC said today it has signed a deal to offer Shanghai Electric Group Co Ltd a global credit limit of US$250 million to help the manufacturing giant ride out the financial crisis.

The agreement will enable Shanghai Electric and its group members to leverage HSBC's international network and resources to facilitate its growth in overseas markets.

The deal includes spot and forward forex deals, working capital, import and export services. The two parties will further explore opportunities for cooperation in areas such as global cash management, project and export financing, payments and collections, financial advisory and insurance services.

"We are pleased to reach this agreement with HSBC and this partnership well demonstrates the strength of both parties. It will also help enhance our risk management in our overseas expansion,"said Xu Jianguo, Chairman of the Board of Shanghai Electric Vincent Cheng, Chairman of HSBC Asia-Pacific, said tie-ups among industry leaders can help generate more business opportunities under the current market situation.

Shanghai Electric is China's major mechanical and electrical equipment manufacturer and is thinking big on internationalization.

The company has already ventured into the power equipment sectors of India, Pakistan, Indonesia, and Kazakhstan. It is also actively exploring other overseas markets including South American countries.

The deal can help quench the company's liquidity amid the global financial crunch and economic slowdown.

HSBC Bank (China) Co, the Chinese mainland subsidiary of HSBC, signed the deal with Shanghai Electric on Friday.

The Shanghai company is strong in power generation, electro-mechanical equipment, heavy machinery and transport manufacturing.


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