More foreign banks await local licenses
19 July 2007
The fourth batch of foreign banks to apply for local incorporation in order to have more access to China's consumer banking market hopes to receive final approval as early as this week, according to people familiar with the matter. The six banks include JPMorgan, Germany's Deutsche Bank, South Korea's Hana Bank and Société Générale of France, the Wall Street Journal reported. JPMorgan has apparently already received initial approval from the country's banking regulator. The bank plans on sending the head of its international treasury and security services business to China to run the local operation. Given that these services are already available to JPMorgan's Chinese clients, it is suggested that local incorporation is a strategic move targeting areas such as derivative-product launches.