BANK OF EAST ASIA
SIMILAR TO businesses that moved west to take advantage of the California gold rush in the 1840s, foreign banks are tripping over each other to take advantage of the mainland's largely untapped banking and financial markets.
In accordance with stipulations set out for China's membership for the WTO, the mainland will further remove restrictions and welcome more foreign banks into the country by the end of the year. And just like the gold prospectors in the United States who saw dollar signs and a promise of riches, banks that make the journey north into the mainland believe there are vast fortunes to be made.
According to economists at Morgan Stanley in Hong Kong, Chinese mainland households have US$80 billion in foreign currency deposited in local bank accounts. Household savings in local currency total about 7 trillion yuan, equal to US$845 billion.
As one of the non-mainland banks with an extensive banking network in the mainland, the Bank of East Asia (BEA) is planning to expand its presence by opening new branches in key locations and upgrading its representative offices to provide a wider range of services.
Chan Kay-cheung, the bank's executive director and deputy chief executive, said as the mainland opened up its banking system, BEA was in a strong position to provide its clients with one-stop services, including a full range of banking services, investment consultancy services as well as property agency and management services.