ICBC Gets Ready for WTOThe Industrial & Commercial Bank of China (ICBC), the biggest commercial bank on the mainland, has taken more aggressive approaches to increasing its competitiveness in the face of pressure from China's impending entry into the World Trade Organization (WTO).Executive Vice-President Wang Lili led a delegation to Hong Kong on Thursday to attract investment in China's western region. She stressed that the tour was not at the central government's request but motivated by business opportunities the bank sees in the western development. As ICBC has a strong presence in both Hong Kong and the western region, the bank can provide sound financial services for Hong Kong investors who intend to go west, Wang said. She said ICBC has applied the same loan policies to both overseas companies and State-owned enterprises (SOEs), and that loans issued to foreign firms account for only about 30 per cent of its total. ICBC has aimed to attract more overseas customers, including those from Hong Kong and Macao, as the bank is adjusting its customer base, which was overwhelmingly composed of SOEs, she said. In addition, ICBC will recruit foreign professionals, including those from Hong Kong, to lead the State giant closer to being an international entity. Wang said ICBC will provide high salaries and good positions to lure experts. Media reports recently said that Chris Chan, the managing director and chief executive of its Hong Kong subsidiary ICBC Asia, will be transferred to Beijing as the bank's senior adviser. Wang said the decision had not been finalized. State banks are expected to be hit hard after China opens the sector wider to foreigners according to WTO rules. China has promised to allow overseas banks to run Renminbi businesses two years of joining the WTO and open the market totally to outside five years after the entry. ICBC on Thursday opened its foreign exchange operations in Hong Kong. The bank announced it was moving operations from Beijing last month. The bank anticipates that Hong Kong's position as an international financial centre will help it improve its overseas business, especially forex operations. ICBC has 8,440 branches on the mainland. Source: China Daily |
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