Standard Chartered, which makes two-thirds of its profit in Asia, said that it plans to incorporate its China-based business in the country, following the lead of HSBC Holdings and Hang Seng Bank in meeting the Chinese government's rule.

Standard Chartered plans to introduce a private banking business in China next year, and could add two sub- branches this year in Shanghai and Shenzhen to its network of 20 outlets.

The bank will focus on developing mortgages, credit cards, cash management, debt capital markets and wealth- management services.

Overseas banks are stepping up expansion in the world's fastest-growing major economy before China fully deregulates its banking industry in December. Banks including Standard Chartered, Citigroup and HSBC Holdings will be allowed to tap $1.9 trillion in savings in China through lending and taking deposits in the local currency.

Standard Chartered currently has 20 outlets in 14 Chinese cities, lagging behind HSBC, which has 26. The bank is aiming to expand its network to 44 outlets within 18 months. HSBC, which plans to add 1,000 employees this year, also owns stakes in two banks, an insurance company and a fund management venture in the second- biggest Asian economy after Japan.

Overseas lenders must become local companies with registered capital of 1 billion Yuan, or $125 million, and working capital of 100 million Yuan per branch to provide local-currency services to individuals and issue credit cards.

The revenue that banks get from credit cards issued in China will rise to more than $5 billion by 2010, from $500 million last year, according to a report by the consulting firm McKinsey.

The number of cards issued in China, now 40 million, has jumped 13-fold in two years with rising incomes. The Chinese economy expanded 10.4 percent in the third quarter. The bank said it is not aiming to make any further acquisitions in China for now.

Source:佚名