Chong Hing Bank seeks to expand faster in mainland China as GBA race heats up
- Chong Hing Bank wants the mainland to account for around half of its net loans and assets, up from around a third, CEO Zong Jianxin told the Post
- Northbound expansion into the Greater Bay Area and the rest of mainland China has accelerated among offshore banks
Hong Kong-based Chong Hing Bank, which is backed by the Guangzhou government’s investment vehicle, Yuexiu Group, is accelerating its expansion in mainland China, in particular the Greater Bay Area (GBA), as lenders vie for a larger share in the growing market.
The bank plans to open around seven new branches and sub-branches in mainland cities in the next five years, with the bulk located in the bay area, said Chong Hing Bank executive director and chief executive Zong Jianxin in an interview with the Post last week.
The lender opened a new branch in Beijing in September, while a new outlet in Hangzhou, the capital of eastern Zhejiang province, is also being planned, he said.
“Actively developing the mainland business is our focus,” said Zong. “Northbound [expansion] is a trend as Hong Kong further integrates into the national blueprint, and we see opportunities there.”
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“It is a medium- to long-term trend for Hong Kong-based banks to expand northward given the large China market and increasing interconnectivity with Hong Kong,” said Frankie Leung, a partner at consultancy firm Bain & Company. “While the expansion may not be limited to GBA, GBA is definitely the priority area of focus.”