Insiders said one of the biggest disadvantages for foreign banks to expand its business in China, compared with Chinese banks, is the small number of sub-branches.

According to a report from Price Waterhouse Coopers, twelve foreign banks, among the 35 respondents, plan to offer Renminbi services to Chinese customers as soon as possible.

The China Banking Regulatory Commission (CBRC), the country's banking regulator, announced recently it has approved nine foreign-funded banks to transform their Chinese branches into locally incorporated banks registered on the mainland.

Under the regulations, China will treat the foreign-funded banks the same as domestic ones, allowing them to conduct Renminbi business for Chinese citizens in line with its commitments to the World Trade Organization.

Statistics from the CBRC show the assets of foreign-funded banks in China totaled 105.1 billion US dollars in September, accounting for 1.9 percent of all banking institutions in the country.

1

2

(For more biz stories, please visit Industry Updates)