DBS China president: China plays a pivotal role in Asian industrial chain coordination

(ECNS) -- Amid globalization, Chinese companies in the automotive, electronics, and energy sectors are rapidly expanding globally, drawing international attention. 

"Overseas demand for China's 'new trio', namely, electric vehicles, lithium-ion batteries, and photovoltaic products, is extensive, and the Development Bank of Singapore (BDS) aims to seize greater opportunities as Chinese enterprises go global," said Zheng Sizhen, president of DBS China, in a recent interview with China News Network. 

Embracing globalization with Chinese companies

Founded in Singapore, DBS brings nearly 60 years of cross-border expertise. Having operated in China for more than 30 years, the bank has remained highly attuned to opportunities emerging in the internationalization of Chinese businesses, particularly those in the "new trio" sectors.

"The surge in Chinese companies expanding overseas has provided DBS significant growth opportunities," said Zheng. 

While some Western countries have hyped so-called“China’s overcapacity”theory, Zheng is confident about the “new trio” industries’ global prospects, asserting that those sectors are both innovative and in demand worldwide.

"We are highly committed to supporting the expansion of China's new industries, especially in Southeast Asia," she added. 

According to Zheng, Southeast Asian countries,with their proximity and cultural ties to China, have become important destinations for Chinese enterprises looking to expand overseas. DBS, which has extensive resources in Southeast Asia, is well-positioned to offer diverse financial support and strategic advice, facilitating a smoother entry and adaptation for Chinese firms.

"The shift in global supply chains is an inevitable trend," Zheng observed. "China’s role within Asia’s industrial network is becoming increasingly pivotal.”

Zheng believes that amid this shift, China is well-positioned to coordinate between East Asian and Southeast Asian markets.She envisions an Asian supply chain structure with China at its core, integrating markets across Southeast Asia, Japan, and South Korea.

In the layout, DBS aims to enhance its support for Chinese enterprises going overseas and explore globalization opportunities together with its Chinese partners.

Resonate with Chinese opportunities

Within this shared pursuit of future opportunities, DBS has identified technology finance and green finance as key areas for growth. By aligning its initiatives in these sectors, DBS continues to resonate with China’s high-quality development goals.

In September 2024, DBS secured its first Carbon Reduction Loan support facility. Zheng said the funds from this loan will be used to support Vision Energy’s 100 MW wind power project. The project is expected to generate enough power annually to supply electricity to approximately 90,000 households, with significant energy savings and environmental benefits.

This commitment stems from DBS’s recognition of China’s momentum in green development. Zheng highlighted that under China’s dual carbon goals, domestic companies have notably increased investments in green technology and innovation. Moving forward, DBS plans to focus on transition financing and green finance within China.

DBS has introduced a variety of green financial products, such as green bonds, green supply chains, green receivables financing, and sustainability-linked loans, to help numerous Chinese enterprises achieve green and sustainable financing goals.

What's more, in response to the Chinese government's proposal to "actively develop venture capital and strengthen patient capital," DBS has established a New Economy Department dedicated to offering comprehensive investment and financing services for tech enterprises.

“For early-stage companies that may not qualify for large-scale commercial bank loans, patient capital is essential,” Zheng explained. DBS is committed to stimulating innovation among Chinese businesses and supporting unicorns through strategic capital deployment.

Looking ahead, Zheng expressed her confidence in DBS’s future in China. "China has numerous development opportunities, and we will continue to deepen our presence in the Chinese market," said Zheng.