British Standard expands business in China
By Huo Yongzhe (China Daily)
Updated: 2005-06-01 09:37

SHANGHAI:British bank Standard Chartered is to expand to new premises in Shanghai.

The move is to accommodate a doubling in Shanghai staff to 1,400 by the end of the year, said Standard Chartered's newly appointed CEO for China Katherine Tsang .

The firm is expanding its Shanghai operation in preparation for the opening up of China's financial sector, scheduled to be completed by the end of next year.

Citibank and the Hongkong and Shanghai Banking Corp (HSBC), two leading foreign banks, have already expanded their offices in Lujiazui, a key financial area in Shanghai.

"We are considering a number of alternatives...and I hope there will be a result before the end of the year," Tsang said yesterday.

Apart from Shanghai, Tsang said Standard Chartered is to increase its number of branches and sub-branches from 11 to 20 by the end of next year.

The company is scheduled to open three branches in Guangzhou, Suzhou and Chengdu in the coming three months and is applying for two more licences to do renminbi business in Tianjin and Zhuhai.

Tsang said she hopes the company will spread to the middle and northern parts of the country under her tenure.

In a strategy to plug the possible talent gap brought about by rapid expansion, Standard Chartered is to recruit not only graduate associates from universities, but also experienced staff, said Tsang, adding that new recruits will not only be based in Shanghai, said Tsang.

She said that the number of trainees could be over 100 this year.

 "Our judgment is that China and India will be crucial for Standard Chartered's future growth," she said.

But the company will not transfer any of its global tech support centres, currently based in India and the United Kingdom, into China in the very near future, Tsang insisted.

When asked about expansion in other sectors such as investment banking and fund services, Tsang replied: "I am serious to say that we will not rule out any possibility for introducing more business lines."

The company has signed a framework agreement with Chinese partners to buy a 19.9 per cent stake in yet-to-be-launched Bohai Bank, a new commercial bank to be established in Tianjin.

 According to the CEO, Standard Chartered is actively seeking mergers and acquisitions with smaller Chinese banks.

"We are in talks with a number of potential banks (for stake takeovers)," she said, but declined to give further details.

Currently, over 140 foreign banks are operating in Shanghai, but take only a marginal 1.5 per cent of the total market share. The big four State-run banks account for about 59 per cent of the market.

As an overseas Chinese CEO, Tsang said she hoped her arrival could help facilitate and strengthen ties with Chinese regulators, partners and media.

Led by HSBC and Citibanks' move to employ more Chinese staff, several foreign banks have begun introducing high-profile executives with Chinese backgrounds.

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