Banque Nationale de Paris (BNP) yesterday became the first foreign bank to establish in Suzhou in Jiangsu province when it opened a representative office through its Shanghai-based joint-venture bank.
The Suzhou office marked the start of expansion out of Shanghai for the International Bank of Paris and Shanghai (IBPS), executive general manager Henri Hunault said.
BNP is an equal partner with the Industrial and Commercial Bank of China in IBPS, which was set up in November 1992.
'We selected Suzhou because it has developed an industrial and commercial base since the 14th century,' Mr Hunault said. Recent developments had created conditions for the city to become a back-up for Shanghai.
Suzhou recently has captured the interest of foreign investors trying to escape rising costs in Shanghai.
Its proximity to Shanghai and aggressive promotion by officials have proved a strong magnet for foreign firms.
Overseas investment in Suzhou rose to US$2.33 billion last year, from $2.17 billion in 1994 and $1.51 billion in 1993, the Suzhou Foreign Investment Commission said.
