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The Bank of East Asia (BEA), Hong Kong's fifth largest lender in terms of assets, said yesterday it plans to open two more sub-branches in the mainland's less developed provinces, boosting its outlets there to 25 by early next year.
It is the latest move by an overseas bank to expand throughout the mainland and tap into the potential of the financial services sector, which is expected to open more widely to overseas investors by 2007.
"The BEA has just received approval from the China Banking Regulatory Commission to proceed with the establishment of the Dalian Huafu sub-branch and the Xi'an South Gate sub-branch," the bank said in a statement.
The two sub-branches, which are expected to open for business by February 2006, will be in northeast China's Liaoning Province and northwest China's Shaanxi Province. Both provinces are economically less active compared to China's coastal regions.
Through the establishment of the two sub-branches, the BEA aims to serve high-income customers. It is also set to explore business opportunities when overseas banks are allowed to offer renminbi services to local residents starting from the end of next year.
The BEA is one of the most proliferate overseas banks in China. It currently has nine branches, four sub-branches and seven representative offices on the mainland, and four sub-branches are due to open.
This year, the bank has already opened representative offices, in Suzhou in May and Dongguan in June. Branches in Hangzhou and Chongqing (an upgrade of the existing representative offices) are expected to open in November and December respectively.
In addition, the bank is also planning to open a Shenzhen Nanshan sub-branch and a Shanghai Xintiandi sub-branch this year.
By the end of this year, the BEA will have 23 outlets across the Chinese mainland.
Hong Kong banks are all keeping a close eye on the mainland market, and are keen to set up more offices there.
HSBC and its sister bank, the Hang Seng Bank, have 24 branches and offices on the mainland. The Standard and Chartered Bank has 13 branches and offices on the mainland. It is buying stakes in mainland banks in a bid to increase its presence in the growing Chinese banking sector.
(China Daily September 21, 2005)
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