China Banking Regulatory Commission (CBRC) Chairman Liu Mingkang said here Thursday that foreign banks are performing well in China and he encouraged them to enhance cooperation with Chinese counterparts for a bigger market share.

Liu said at the 2005 Asia Pacific Cities Summit that currently the total bad loan ratio of foreign banks in China is less than 1 percent and most banks are making profits at fast speed.

The Chinese government welcomes foreign banks to enter China's market in an orderly way, the official said, adding that they are especially encouraged to develop in China's western and northeastern regions.

In China, some foreign banks establish their independent branches while others choose to cooperate with the local banks.

Liu said the cooperation will improve the management in China'sbanks and will also help to spread foreign banks' financial products into China's market.

The official said China is improving the environment for the development of both domestic and foreign banks.

Source: Xinhua