07.11.2001
Two banks apply to break into China market

• Development: First Commercial Bank and Hua Nan Bank have submitted applications to the Ministry of Finance to open representative offices in Shanghai.

• Analysis: There are more than 40,000 Taiwanese companies with established businesses in China. Banks with mainland representative offices will help monitor loan quality while increasing business in their Hong Kong offices.

• Primasia View: We remain cautious on both banks as poor asset quality from domestic loans remains an issue regardless of aggressive expansion into China.

WilliamFong@Primasia.com +886-[0]2-2547-8864