Released on = December 11, 2006, 10:43 pm

Press Release Author = RNCOS

Industry = Financial

Press Release Summary = Chinese banking sector opens up for global competition with
new rules coming to light. Following these regulations, overseas banks are
enthusiastic about expanding their businesses in China.

Press Release Body = On 17 November 2006, overseas banks announced that they intend
to expand their operations in China subsequent to the release of new rules. The
rules are said to have opened up China’s banking sector for global
competition.

HSBC, Standard Chartered, Bank of East Asia, and Hang Seng all corroborated to AFP
that they have plans to launch locally joint ventures in the country, as requisite
by new regulations.

China guarded new rules enabling overseas banks into the money making retail banking
industry, as officials said that the stringent requirements of the new regulations
meet promises on opening the long protected retail-banking sector to overseas
competition.

The rules require overseas banks to locally incorporate if they intend to offer
local currency services to Chinese individuals. Beyond that, overseas bank have to
put up one Billion Yuan (or US$ 127 Million) for the incorporated bank and reserve
100 Million Yuan for every branch.

The new regulations (effective from December 11 2006) are designed to realize one of
the last commitments made by China while the country joined WTO five years ago for
opening up its banking sector to global competition. Executives of overseas banks
have, however, complained that increased capitalization and other requirements are
likely to slow their ability of setting up broad branch networks.

As per the views expressed by a senior Research Analyst at RNCOS, who has recently
researched a report on “China Banking Sector Analysis (2006-2009)”, the
new rules will enable foreign banks access local currency retail market and will
subject them to several similar regulatory requirements like that of local banks,
while there’ll be some tougher restrictions.

“China Banking Sector Analysis (2006-2009)” report also addresses some
interesting issues that are critical to the success of those venturing in to banking
sector in China, such as:

- Get insight into the trends in market performance.
- Pinpoint sectors of growth and identify the driving factors.
- Opportunities, Strategies and challenges in Chinese banking industry.
- Identify market, brand leaders, and understand the competitive environment in
banking sector in China.

About the report:

A must read for investors, researchers, businesses and individuals who are closely
monitoring the developments in China banking sector, this report provides extensive
research and objective analysis on the growing banking industry, their product
quality, and their services in India. It helps clients to analyze the leading-edge
opportunities critical to the success of the banking industry in China.

About RNCOS:

RNCOS, incorporated in 2002, provides Market Research Reports for your business
needs and aims to put an end to your information pursuit. Our expertise in gathering
global business information for industry research, corporate training, growth
consulting, and business consulting, brings reputed companies and firms to us for
business enhancement solutions. We can be your one-stop-shop for Industry research
information and niche market analysis.

For more information visit: http://www.rncos.com/Report/IM056.htm
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