Why is China's financial sector going global?

By Xie Weiqun (People's Daily)

08:14, December 02, 2011

1. China assists Africa with food security
2. China calls for cool heads in Kosovo
3. Second-hand Beijing house prices fall
4. Love cheat seduced for cash
5. China may adopt emission limit
6. Recommended reader's comments (Dec. 1)
7. People’s Daily Online offers jobs in New York

What's happening in China

Passengers swipe identity cards to enter Nanjing Railway Station

1. Amateur comic acts up over stage ban
2. First snow falls in Beijing
3. Sex-worker brides bring HIV across the border
4. Beijing police crack down on black jails
5. China's 2011 grain output exceeds 571 mln tonnes
6. Pesticide in Coca-Cola drink kills boy

China Features

1. Private Remedy
2. Portraits of change
3. Amateur comic acts up over stage ban
4. Turning Sour
5. Christmas crackers Opinions
   1. World needs safety net against euro crisis
   2. US-Pakistan anti-terrorism coalition close to collapse
   3. China's schools on the way up
   4. What is to be done with Syria?
   5. UK mass strike shows steep learning curve
   

   

   1. Manufacturing activity contracts on sluggish demand
   2. Beijing lawyers avoid low-earning crime cases
   3. EU reinforces restrictive measures against Iran
   4. Medvedev, Putin meet supporters in Moscow
   5. Mongolia, ADB sign loan deal for road construction
   6. Better to bring HIV testing services to community
   7. 500 new graduates join police forces in Afghanistan

Edited and translated by People's Daily Online

According to data from the China Banking Regulatory Commission, by the end of 2010, the five major Chinese banks — the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank and Bank of Communications — had established 89 first-class overseas operating agencies in Asia, Europe, North and South America, Africa and Oceania and purchased or shared in 10 overseas enterprises, and the six Chinese commercial banks had also established five overseas branches and five overseas loan offices. 

Why are the state-owned banks accelerating their strategy to expand worldwide? 

Internationalization, integration strategies 

In the opinion of state-owned bank operators, the economic recovery and the acceleration of the globalizing process among Chinese enterprises guarantees their international development. With the solidifying of China's status as the second largest economy of the world, more Chinese enterprises will ratchet up efforts to go global, and that will further expand the markets of the commercial banks' international settlement and cross-border wealth management businesses. 

Meanwhile, the accelerating RMB internationalization process brings opportunities for the banks' international development. In the 12th Five-Year Plan, transnational commercial operations, cross-border trades and capital flows will further strengthen the RMB internationalization trend. 

Transformation of development mode offers space for bank internationalization

The president of the Bank of Communications Niu Ximing said that the transformation of China's development mode also offers space for the banks' international development. In the 12th Five-Year Plan, China will continue promoting the adjustment of the economic structure and the transition of the economic growth mode and continue maintaining a steady and relatively rapid economic development. 

Enterprise clients of the banks will face many uncertainties, such as the transformation of the growth mode, changes to the business environment and fluctuation of the factor price. It will be good for the banks to carry out their offshore, onshore, overseas and domestic businesses of domestic and foreign currencies and will promote the innovative development of their structural hedging and appreciating businesses of the exchange rate and interest rate margins between the domestic currency and foreign currencies. In addition, the increased strengths of the state-owned banks have also laid foundations for their international development, Bank of Communications Vice President Wen Hui said.

Email|Print|Comments（Editor：张洪宇）

Increases the bookmark

• twitter
• facebook
• Sina Microblog
• digg
• Google
• Delicious
• buzz
• friendfeed
• Linkedin
• diigo
• reddit
• stumbleupon
• Qzone
• QQ Microblog

Related Reading

1. To examine, put to test financial sector in big economic system
2. Hong Kong 'directionless'
3. Economists call for financial sector overhaulMost Popular
   • China suffers from trade protectionism
   • WB economist: US, EU must heed China's …
   • China, Turkey start natural gas storage…
   • Air drones scan China's seas
   • Shanghai builds homes for financial tal…
   • Chinese fleet holds drill in Gulf of Ad…
   • Hot air: Chinese experts talk global wa…
   • Tibetan self-immolation violates Buddhi…
   • Cut in bank reserves to boost China's e…
   • China willing to further ties with Kyrg…
   

   Opinions

   1. UK mass strike shows steep learning curve
   2. What is to be done with Syria?
   3. China-Myanmar ties challenged by US moves
   4. China and India mustn't go for the throat
   5. Germany needs wisdom to save euro
   6. Egypt's chaos: No end in sight
   7. Chinese still swarm to hard-hit Wall Street
   8. Durban goals must not crack under pressure
   9. Corporate efforts better than govt ad in selling China
   10. Iceland deal hits local firms with dose of cold water