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HSBC's Asia Chairman Vincent Cheng (L) and China Chief Executive Richard Yorke unveil the sign of HSBC Bank (China) Co. Ltd during a news conference in Shanghai April 2, 2007. [newsphoto] |
Locally incorporated entities of four foreign banks started operations Monday in a move to tap into China's 30 trillion yuan in household savings and surging demands for mortgages, credit cards and other services.
However, they still have to wait before offering local currency deposit and loan services to individual Chinese customers as the check-up of their outlets by the regulators, China Banking Regulatory Commission, has not finished yet, reports said.
This service which captured the most attention could start as early as mid-April, the Oriental Morning Post cited insiders as saying.
Chinese regulators approved the locally incorporated entities of Citigroup Inc., HSBC Holdings PLC's Hong Kong & Shanghai Banking Corp., Standard Chartered PLC, and Bank of East Asia Ltd on March 20.
The go-ahead enabled the foreign lenders to offer full yuan services to their Chinese clients, including individual Chinese customers.
Previously, foreign banks were restricted to offering foreign-currency services to individuals while capable of providing both local and foreign-currency services to enterprises.
The four banks boast of more than 100 outlets in the Chinese mainland, including 35 for HSBC, 23 for Standard Chartered, 16 for Citigroup and 32 for Bank of East Asia.
That compares with 18,000 outlets for Industrial and Commercial Bank of China, 11,000 for Bank of China, 24,900 for the Agricultural Bank of China.
HSBC aims to double the size of its network this year. Standard Chartered has invited Baosteel Group former chairperson and president Xie Qihua who is well known both at home and abroad to act as independent director.
Mortgages, a major battle field
Mortgages, a key source of profit for domestic banks, are expected to be a major battle field between the Chinese lenders and the new comers.
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