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HSBC, one of the world's leading banking groups, Thursday opened a sub-branch in Beijing, becoming the first foreign bank to do so.
The move confirmed foreign banks' interest in tapping the potentially lucrative domestic market, as China gradually opens up to foreign financial institutions in line with its commitments to the World Trade Organization.
Dicky Yip, chief executive of China business at HSBC, said: "We are delighted to be able to further expand our presence in Beijing, which offers important growth potential for us. We look forward to serving our local and international customers in Beijing with our expanded network and service range."
HSBC obtained regulatory approval to open a sub-branch in the capital in December 2004. In a prime location in the China World Shopping Mall, the sub-branch offers a full range of banking services, including renminbi and foreign currency services for local and international companies, foreign nationals and residents of Hong Kong, Macao and Taiwan, as well as foreign currency services for mainlanders.
In 1980, HSBC opened a representative office in Beijing, following the mainland's introduction of the reform and opening-up policy in the late 1970s. The office was upgraded to a full service branch in 1995. HSBC became the first foreign bank to offer renminbi services at its Beijing branch on March 18 this year.
With its China head office based in Pudong, Shanghai, HSBC's network on the mainland currently comprises 10 branches - in Beijing, Dalian, Guangzhou, Qingdao, Shanghai, Shenzhen, Suzhou, Tianjin, Wuhan and Xiamen; sub-branches in Beijing, Shanghai and Guangzhou, and two representative offices in Chongqing and Chengdu, both having obtained approval to upgrade to full branch status. The bank plans to open its Chongqing and Chengdu branches in the second half of the year.
China will allow foreign banks unrestricted access to the domestic market by the end of 2006.
On average, a Chinese family saves about 30 percent of its income. It is expected, within 10 years, there will be US$75 billion to US$150 billion in savings for foreign banks to compete for.
(China Daily April 29, 2005)
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