Foreign bankers welcome changes
Foreign bankers yesterday welcomed Beijing's plans to accelerate reform of the sector, saying the policies would facilitate wider foreign participation in the mainland.
Vice-Premier Zhu Rongji on Monday said important breakthroughs aimed at greatly accelerating liberalisation of the economy would be unveiled in November.
He also indicated increased foreign participation was welcome but not at too quick a pace.
Chase Manhattan Bank's managing director and regional manager of greater China and the Philippines, Anthony Leung Kam-chung, said Mr Zhu's speech would increase the confidence of foreign banks.
'The vice-premier's speech has shown China's commitment to open up its market and that will certainly increase foreign banks' confidence in the mainland,' he said.
'I believe foreign banks who have yet to decide whether to enter the China market will now consider going, and that those who have already entered will also consider reviewing their strategies to further develop in China.' Mr Zhu's comments urging foreign banks to avoid expanding too quickly did not mean China wanted to slow down the pace of reform for foreign banks, Mr Leung said.
'It is reasonable for China to open the market to foreign banks step-by-step, or local banks won't be able to cope with the competition from foreign counterparts,' he said.
He said Chase had a branch in Shanghai and it wanted to apply to set up a branch in Beijing.
HSBC Holdings chief executive officer David Eldon said it was sensible for China to urge foreign banks not to enter the market too quickly.
'It needs to be very careful and develop the business slowly to avoid any mistakes,' he said.
