Foreign banks gloomy about profitability
Print Edition
Foreign banks on China’s mainland do not expect to post a significant improvement in their profitability last year as a liquidity squeeze raised funding costs and the country’s economic rebalancing deteriorated asset quality, PricewaterhouseCoopers said yesterday.
“Macro-economic changes in 2013 increased pressure on profitability of foreign banks on China’s mainland,” Michael Hu, financial services assurance partner of PwC for China, told Shanghai Daily.
“The credit squeeze last year increased banks’ funding costs. In addition, China’s economic rebalance that phases out obsolete capacity will deteriorate banks’ asset quality,” Hu said.
The foreign banks were optimistic about the development of China-related business in a global or regional perspective, such as cross-border yuan business which is growing faster for them than their Chinese peers, Hu added.
Foreign banks expect to “stay the course” in their China strategies while waiting for the benefits of the reforms and regulatory changes that were unveiled by the Party’s plenum in November, PwC said in its annual survey on foreign banks in China. The survey also found that eight overseas banks are keen to set up a branch in the Shanghai pilot free trade zone, while 22 banks prefer to wait and see.
The survey also said the FTZ will not threaten Hong Kong in the near future. Instead, it will cement Hong Kong’s role as a major offshore yuan center as investors can use the FTZ to access more yuan products.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
