Liu Mingkang, president of China Banking Regulatory Commission, noted recently that Citibank, HSBC and many other foreign financial institutions have invested in and become shareholders of ten Chinese banks so far, and the negotiations with another eight Chinese banks are currently under way. "By the end of 2004, the paid-in investment of Chinese banking financial institutions totaled 3.186 billion US dollars," added Liu, while meeting with HSBC president.

Liu pointed out that the current cooperation between Chinese and foreign banks will create a win-win situation. On one hand, foreign banks could rapidly expand their market share and client sources so as to boost self-development; on the other hand, the rich experiences of foreign banks in terms of capital and business management and risk precaution could not only provide Chinese banks with supplementary capital, but also bring their modern banking operating mechanism and advanced banking management methods to Chinese banks. Through the direct participation in Chinese banks' internal control and management, the foreign banks will play a positive role in raising business management and internal control of Chinese commercial banks, enhancing financial service level as well as maintaining financial stability in China.

By People's Daily Online