China has business opportunities | Foreign banks accelerate their entry into Shanghai.
With a huge market of nearly 1.4 billion people, China, based on its own reality and in accordance with the established strategy, has continued to expand its opening up, attracting a large number of large multinational enterprises to invest in China and explore new opportunities.
Voice of the Economy series reports "China has business opportunities": foreign banks accelerate their entry into Shanghai.
Foreign financial institutions are attracted by the China market.
The meeting of rivers and seas and the turn of China and the West — — Shanghai, the bright pearl of the East, is composing a grand movement of China’s further opening to the outside world. And more and more foreign banks are rushing to Shanghai, which has become a smart note in the grand movement.
In June this year, Guotai Shihua Bank was approved by China Banking and Insurance Regulatory Commission, becoming the 21st foreign-funded corporate bank to open in Shanghai. Meanwhile, the Arab Bank of Jordan will also set up a branch in Shanghai. The latest report "Development and Policy Evaluation of Foreign Banks" shows that commercial banks from Britain, Japan, Singapore and France have expressed their intention to set up new institutions or increase their shareholding in Shanghai and other places. Many foreign banks, such as Standard Chartered and Citigroup, are also deepening their business in China with the help of mature overseas network layout and rich international business operations.
Gao Yiya, chairman of Bloomberg Limited Partnership, who has long been concerned about the development of China’s financial market, used the word "attraction" to describe the grand occasion of foreign investment in China.
Our customers all over the world want to know what happened in China. Nowadays, China’s open attitude is very attractive. We will continue to invest in the China market.
As one of the first foreign financial institutions to enter Shanghai, China Free Trade Zone, Ge Ganniu, CEO of dbs group (China) Co., Ltd., used a set of figures to describe his confidence in the China market.
DBS has high confidence in the development of China market. DBS Group increased its capital in DBS China twice in 2012 and 2016, 2.3 billion RMB in 2012 and 1.7 billion RMB in 2016, which fully reflected its long-term investment and commitment to China market.
Foreign banks in China: the change of "one more and one less"
After careful observation, it is not difficult to find that the operating conditions of foreign banks in China in recent years can also be described as "more or less": "more" is manifested in — — The number of foreign banks’ institutions in China, business areas, clients, business types, and especially the profits earned from less to more; "Less" is manifested in — — In China, the restrictive regulations on foreign banks have been reduced, the items for examination and approval have been reduced, and the differences between domestic and foreign regulatory policies are even less!
This change of "one more and one less" is closely related to China’s continuous promotion of a deeper and higher level of opening to the outside world. Since 2017, the Ministry of Finance and the China Banking Regulatory Commission have successively stated that they will greatly relax the restrictions on the shareholding ratio of foreign capital in the financial industry and implement consistent rules for equity investment ratio inside and outside. This year, China Banking and Insurance Regulatory Commission once again "shot" to greatly improve the convenience of foreign banks doing business in China and further expand the opening up of the financial industry.
Data show that by the end of last year, there were 1,013 foreign banks operating in China, with an average annual growth rate of 13%. The total assets of foreign banks in China have increased from more than 300 billion yuan at the beginning of China’s accession to the WTO to 3.24 trillion yuan at the end of last year, a full increase of more than nine times.
Facing the reporter’s interview, Simon Derrick, chief foreign exchange strategist of Bank of New York Mellon, said that with China’s financial opening-up and more practical measures, foreign banks will usher in more benefits in the China market.
I fully believe that the demand for RMB products will be very strong, such as reserve managers and fund managers, who will be willing to invest in RMB products.
China has become a huge business opportunity for foreign banks.
JPMorgan Chase, an internationally renowned financial institution, has a keen sense and execution of the huge business opportunities contained in the China market: as early as May this year, JPMorgan Chase announced that it would seek to establish a brand-new financial institution with a shareholding ratio of 51% in China. For the future development, JPMorgan Chase Chairman and CEO Jamie Dimon made his own prediction.
I expect the banks in China will further increase in size and become stronger in the future. Including investment banking and commercial banking, China will see great growth in the next four to five years. That’s why we need to strengthen our business in China. We have wholly-owned business and joint venture business in China. We will continue to invest in the next few decades.
Ceng Gang, director of the Banking Research Office of the Institute of Finance of China Academy of Social Sciences, believes that more and more foreign banks have landed in Shanghai and laid out in China, and the huge open market has become a huge business opportunity for foreign banks.
China is the second largest economy in the world, and its economy is still growing at a medium and high speed, so it is still a very attractive market for foreign financial institutions. Obviously, it has always been the idea of many large foreign-funded institutions to take the opportunity to speed up the layout in China in such a big wave of our opening up.