Foreign banks thrive in Qingdao
QINGDAO: While only in Qingdao for the past two months, General Manager of Shinhan Bank's local branch Sung Kuk-Jae has grown accustomed to the lifestyle thanks to weather not unlike that in his hometown in the Republic of Korea (ROK).
Sung's branch was rated Shinhan Bank's best foreign-based local office by the bank's Korean headquarters last year.
"Qingdao is one of the most economically dynamic cities in China," Sung told China Daily.
"Its advanced infrastructure and fast-growing economy draws attention from home and abroad.
"We are confident in investing in Qingdao for its favorable investment environment."
As the first city in the province to open RMB operations to foreign banks, Qingdao now boasts the highest concentration in Shandong.
Currently eight international banks including HSBC, Standard Chartered Bank, Yamaguchi Bank and Qingdao International Bank have branches in the city.
Qingdao boasts the seventh highest number of foreign banks of all Chinese cities following Shanghai, Beijing, Shenzhen, Guangzhou, Tianjin and Xiamen.
This year leading Italian bank Intesa Sanpaolo SpA bought 19.99 percent of Qingdao City Commercial Bank for $1 billion.
Intesa Sanpaolo, which paid 2.6 yuan per share, is the latest foreign bank to enter Qingdao by acquiring holdings.
"ROK has become the largest importer and the third largest export market of Qingdao," Sung said.
"By the end of June 2007, 6,000 Korean companies had set up operations in Qingdao."
At present, Shinhan Bank's Qingdao branch offers services such as foreign exchange deposits, loans and remittance to Korean enterprises, Qingdao locals and people from surrounding areas.
Competition among the banking industry continues to heat up in the city.
HSBC has more than 100 ATM machines in 15 cities across China and 10,000 international institutions covering 83 countries and regions.
The Bank of East Asia (BEA) is another with a presence in Qingdao and which boasts diversified financial products.
"It is our advantage," BEA Qingdao branch general manager Liang Zhiwei said.
"Every month we will launch several new financial products."
The influx of foreign banks will only spur healthy competition in Qingdao's financial industry and diversify financial products to ultimately attract more foreign investment.
(China Daily 08/23/2007 page24)
