Local pinch may hurt overseas lenders

Most of the foreign banks in China expect no erosion in their market share, though some may see declines this year due to stronger competition from local players, according to a report by accounting firm PricewaterhouseCoopers.

The conclusion is totally different from that of 2008 when most of the foreign banks forecast that their market share would continue to grow.

"As domestic banks have enhanced their skills and performance, many foreign banks feel pressured by restrictions on innovation and creativity," said Raymond Yung, PwC's Financial Services Leader for the mainland market.