Deutsch Bank AG took its first step into the Chinese mainland's private banking market by launching wealth management services in Shanghai.

The move by Germany's biggest lender followed similar forays by rivals BNP Paribas, Citigroup Inc and others. "China's growth is generating significant affluence, and the need for wealth management services is rapidly expanding," said Pierre de Weck, the bank's global head of private wealth management. "Clients are seeking more sophisticated solutions in managing their wealth, and we see huge growth potential in China as the process of market deregulation continues."

The bank is targeting the rich: those with at least 10 million yuan (US$1.27 million) in assets. Private banking has become a new focus for overseas financial companies operating in China as the number of wealthy residents rises.

The Chinese mainland is home to 320,000 people whose net worth exceeds US$1 million. Total assets held by Chinese millionaires topped 1.59 trillion yuan in 2005, the second-highest in the Asia-Pacific region following Japan.

AIG, Citigroup and BNP Paribas have already set up private banking offices on the mainland, and the Hong Kong and Shanghai Banking Corp is planning to follow suit.

Foreign banks will be able to compete with their domestic counterparts on an equal basis in December under China's commitment to the World Trade Organization.

Source:佚名