Ping An, China's largest insurance group, and Israel's Bank Leumi have signed a strategic cooperation agreement to promote the entry and integration of Israeli high-tech companies into the Chinese market.
The agreement was signed as part of Israeli Prime Minister Netanyahu's visit to China, marking the 25th anniversary of diplomatic relations between the two countries.
The companies said in a statement that, as part of the agreement, Leumi-Tech, Leumi Group's high-tech banking arm, will constitute a bridge between Leumi Group customers and the Ping An Group. Israeli technology companies with potential and interest in the Chinese market will be introduced to Ping An, which will assist these companies either through establishing relationships with Ping An subsidiaries, integrating suitable companies in high-tech complexes built by Ping An's real estate company, or by getting them acquainted with relevant Chinese entities. Ping An also will aid in the process of obtaining financial and tax benefits allocated by the Chinese government for the benefit of technology companies in general and startups in particular.
The agreement reportedly stemmed from the Leumi Group's desire to leverage Leumi-Tech's capabilities in assisting Israeli high-tech companies that wish to penetrate the Chinese market, through cooperation with a major Chinese entity.
The cooperation agreement was spearheaded by Leumi-Tech, led by Yifat Oron, and Leumi's representative office head in China, Eyal Shimoni. The representative office was established in Shanghai in 2013, with the aim of assisting Israeli companies operating or wishing to operate in China, as well as helping Chinese companies operating or planning to operate in Israel. Leumi is currently the only Israeli bank operating in China and it employs a team that is deeply familiar with the business and financial sectors in that country.
Leumi's chairman, David Brodet, who participated in the economic delegation that accompanied the Israeli prime minister's visit to China, signed the cooperation agreement with Ping An on behalf of Leumi. Mr. Brodet, who was among those who promoted the establishment of a Leumi representative office in China, said at the signing ceremony, “Our precedent-setting alliance with Ping An is the result of the maturing of two strategic processes led by Leumi Group: assisting Israeli companies facing the enormous Chinese market, through our representative office in China, and fostering and promoting Israeli high-tech, through Leumi-Tech. This cooperation will open a broad gateway for Israeli high-tech companies to the world's largest market, and will also help the State of Israel's economic image and activity vis-à-vis China.”
Ping An's president, Andrew Zhou, commented, “We attach great importance to the strategic agreement with Bank Leumi, and I hope and believe that many Israeli high-tech companies will join the program and will be able to reap the fruits of this important cooperation.”
Leumi-Tech's chief executive officer, Ms. Oron, who will be responsible for the agreement's implementation, sees considerable potential benefits for the Israeli high tech sector from this cooperation. “Leumi-Tech has, in a very short period of time, become the financial home for the Israeli high tech industry, thanks to the tailored services and products we offer to this unique industry, alongside the opportunity we provide to Israeli high tech companies to develop in Israel and worldwide. The cooperation agreement with Ping An is an important new milestone in the service we provide to our customers and will allow many Israeli startups to enter one of the biggest and most significant markets in the world, with the potential for virtually unlimited growth. It is well known that the cultural gap and language differences are major barriers for Israeli companies on their way to penetrating the Chinese market. This strategic alliance ensures assistance with both of these barriers and other obstacles, considerably easing the process and opening the door to dozens of Israeli high tech companies,” said Ms. Oron.
Learn more: Ping An, Leumi-Tech.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].