SHANGHAI: Hong Kong-based Hang Seng Bank and Singapore's DBS Group Holdings
said yesterday that they had received approval from China's banking regulator to
incorporate locally, paving the way for them to tap the renminbi retail
The two lenders were among the second batch of eight overseas banks allowed
to prepare for local incorporation, but names of the other six were not
immediately available and the China Banking Regulatory Commission (CBRC) could
not be reached last night.
Earlier, HSBC, Standard Chartered Bank, Bank of East Asia and Citigroup
secured the nod to start operations as locally incorporated companies and have
begun offering renminbi retail services.
In addition, Mizuho Corporate Bank, Bank of Tokyo-Mitsubishi UFJ Ltd, ABN
AMRO, Oversea-Chinese Banking Corp, JPMorgan Chase Bank and Wing Hang Bank are
preparing to register their local subsidiaries in Shanghai, Beijing or Shenzhen.
"We are very pleased that the CBRC has granted approval for Hang Seng to set
up a mainland-incorporated subsidiary," Raymond Or, vice-chairman and chief
executive of Hang Seng Bank, said yesterday.
"The establishment of Hang Seng Bank (China) Limited marks a significant new
phase in Hang Seng's mainland business strategy and is in line with our
longstanding commitment to this fast-growing market," he added.
To be headquartered in Shanghai, Hang Seng Bank (China) Ltd is expected to
begin business shortly. Or will be the chairman of the bank's mainland
subsidiary and Johnson Fu, head of China Business, will serve as chief
DBS Group Holdings, Southeast Asia's largest bank, confirmed to China Daily
last night that it had also received the green light from the regulator.
"With the setting up of the local subsidiary, and in time to come, we hope to
provide the full suite of wealth management services to our customers in Hong
Kong and Singapore, and to local and foreign residents on the mainland," DBS
spokeswoman Eunice Woo said earlier.
Hang Seng Bank, a principal member of the HSBC Group, has a network of 17
outlets on the Chinese mainland, including seven branches, nine sub-branches and
one representative office; while DBS has 10 outlets on the mainland, including
those owned by DBS Bank (Hong Kong) Limited.
(China Daily 05/22/2007 page1)