Question: What is the purpose of your trip to Beijing? Gillam: Every year the board makes one overseas visit to somewhere within the bank's operation. I last came here [to Hong Kong] three years ago, and the board has never been to China. When I first became chairman, my responsibility was to look at the global strategy of the bank and what areas we should go further into.
The bank's strength is in Asia. It is important to bring the board here and to China because, as strong as we are in Hong Kong, we have to look north. Now, we are maintaining the biggest network of all banks in China. To take the board to Beijing is a statement to our Chinese friends of the importance of the link we attach to China.
Q: Who will you meet in Beijing? Gillam: The schedule is to go to Shenzhen first and then fly to Shanghai for two days. The board will stay in Beijing until next Sunday. We'll see officials from the People's Bank of China and the Chinese Government.
Q: A few months ago, you said in Hong Kong that the strategy was to enhance trade deals and be cautious about project finance in China. Has this view changed? Gillam: It is still my view. But that does not mean we will not arrange project finance. It is just that we do not see the bank as a very large long-term lender for projects, given the size of the bank and the limited amount of capital we could deploy this way.
Q: Do you think the projects are too risky? Gillam: No, we just want to make the maximum use of the limited capital. I don't see a very high profit margin in project financing because of the keen competition.
Q: What opportunities do you foresee for foreign banks in China under its newly imposed macro-economic measures? Gillam: The more liberalisation and the greater the economic changes, the better the prospects for our bank. Standard Chartered is a bank with 12 operations in China, but the amount of business is still very limited. Any relaxation which allows us to expand our business is welcome.