Citibank, HSBC, Standard Chartered Bank and Bank of East Asia
will soon open businesses as locally incorporated banks in
China.
Local entities of the four foreign banks yesterday received
business licenses from the Shanghai Municipal Administration for
Industry and Commerce, after getting approval from the banking
regulator last Tuesday.
The licenses enable all the banks' branches and sub-branches to
secure commercial registration with local authorities.
Standard Chartered Bank (China) Ltd, Citibank (China) Co Ltd and
Bank of East Asia (China) Ltd said yesterday they would commence
operation next Monday.
However, the four lenders still need to gain approval from the
China Banking Regulatory Commission before they can roll out
renminbi business to Chinese customers.
Foreign banks are eager to tap China's huge household savings
and surging demand for credit cards, wealth management products and
other financial services.
"Local incorporation is a milestone," Citigroup's Chairman and
Chief Executive Charles Prince said yesterday at a media briefing
in Beijing.
"China is crucial to our long-term ambitions," said Prince, who
is in Beijing as part of an Asian tour.
The bank plans to expand its outlets from the current 16 to more
than 30 by the end of this year, taking advantage of China's opened
banking sector to develop its consumer, corporate and investment
banking businesses.
It is preparing to open a new branch in Hangzhou, Zhejiang
Province, next month.
"We are employing a multi-pronged strategy in China," Prince
said, adding that the strategy includes the bank's organic growth
across all business lines and investment in local partnerships.
The bank led a group in December that bought 86 percent of
Guangdong Development Bank. It bought a stake of nearly 5 percent
in Shanghai Pudong Development Bank in 2003.
(China Daily March 30, 2007)