HONGKONG Bank is optimistic about the future of banking services in China, despite the slow progress of banking reform.
With China bound to open its domestic banking market after signing the general agreement on trade and services related to the General Agreement on Tariffs and Trade (GATT) in Morocco, some foreign banks have stepped up their efforts to gain entry into China or expand their operations there.
However, there is little sign of change apart from a slight loosening on the granting of licences to foreign banks. The Chinese do not seem ready to allow unfettered competition in their domestic market.
Eddy Wang, senior manager of Hongkong Bank, said: ''They [the Chinese Government] will open up to allow more foreign banks into China. What they are telling people is they will relax the restrictions on foreign banks but they will not say when.
''They are not prepared to open fully [their financial market]. This is to protect their domestic banks which are not commercially driven and cannot yet be expected to compete against the expertise of the foreign banks.'' The Bank first established its presence in Shanghai in 1865 and is one of the oldest foreign banks in China. Four other branches are in Shenzhen, Xiamen, Qingdao and Tianjin. It also has representative offices in Beijing, Guangzhou, Wuhan and Dalian.
Currently, apart from retail banking, Hongkong Bank is providing a full range of services such as loans, trade finance, foreign exchange, property purchase and others.
