Citibank, HSBC, Standard Chartered Bank and Bank of East Asia will soon open businesses as locally incorporated banks in China.

Local entities of the four foreign banks yesterday received business licenses from the Shanghai Municipal Administration for Industry and Commerce, after getting approval from the banking regulator last Tuesday.

The licenses enable all the banks' branches and sub-branches to secure commercial registration with local authorities.

Standard Chartered Bank (China) Ltd, Citibank (China) Co Ltd and Bank of East Asia (China) Ltd said yesterday they would commence operation next Monday.

However, the four lenders still need to gain approval from the China Banking Regulatory Commission before they can roll out renminbi business to Chinese customers.

Foreign banks are eager to tap China's huge household savings and surging demand for credit cards, wealth management products and other financial services.

"Local incorporation is a milestone," Citigroup's Chairman and Chief Executive Charles Prince said yesterday at a media briefing in Beijing.

"China is crucial to our long-term ambitions," said Prince, who is in Beijing as part of an Asian tour.

The bank plans to expand its outlets from the current 16 to more than 30 by the end of this year, taking advantage of China's opened banking sector to develop its consumer, corporate and investment banking businesses.

It is preparing to open a new branch in Hangzhou, Zhejiang Province, next month.

"We are employing a multi-pronged strategy in China," Prince said, adding that the strategy includes the bank's organic growth across all business lines and investment in local partnerships.

The bank led a group in December that bought 86 percent of Guangdong Development Bank. It bought a stake of nearly 5 percent in Shanghai Pudong Development Bank in 2003.

(China Daily March 30, 2007)