Eight foreign banks have applied to open retail operations in China, the bank regulator said as a WTO deadline for opening China's banking market passed.

Some 71 foreign banks are represented in China, but until now they were barred from handling business in Chinese currency for retail customers. Beijing agreed to open the market as part of its World Trade Organization membership and its banks have been racing to modernize in preparation for facing foreign competitors.

Banks that have applied for local status are Citigroup Inc. of the United States, Japan's Mizuho Corporate Bank, Britain's HSBC Corp. and Standard Chartered PLC, Dutch bank ABN Amro Holdings NV, Singapore's DBS Bank and Hong Kong's Bank of East Asia and Hang Seng Bank, according to Web site of the China Banking Regulatory Commission.

HSBC, Citigroup and others including Bank of America Corp. have spent billions of dollars to prepare for the market opening, buying stakes in Chinese partners and setting up credit card and other ventures.

Foreign competitors want a share of market with some $4 trillion in household savings and growing demand for financial services. But foreign banks still must meet Chinese regulatory requirements to conduct retail business. That, along with the cost of operating a branch network, is expected to discourage many from setting up local operations. Most are expected to continue to operate through ventures with Chinese partners.

Source:佚名