Assets of foreign banks in Shanghai grow 15 percent

Foreign-funded banks in Shanghai have recorded a total of 1.45 trillion yuan (US$220 billion) in assets from January to September, exceeding 10 percent of the entire local banking sector for the first time since 2015.

This represents asset growth of 15.1 percent compared with a year ago, according to the latest data released by the Shanghai branch of China Banking Regulatory Commission.

As of the end of June, Shanghai had 67 foreign bank branches from 28 countries and regions, plus 68 foreign bank representative offices from 22 countries and regions, the regulator said.

The overall non-performing loan ratio of foreign banks in Shanghai was 0.51 percent during the last six months, lower than the average level of 0.57 percent across the whole industry.

The improved asset quality of foreign market players marked a new low in nearly two years and was down 0.09 percentage points from the beginning of the year.

By relying on their international networks and integrated financial products, foreign banks in Shanghai have exploited the great potential of the Belt and Road Initiative and provided all-round financial services to support Chinese enterprises’ “going out" strategies, according to media reports.

During the first half of this year, four new entrants were given the green light by the local banking regulator to open their branches in Shanghai: Japan’s Shoko Chukin Bank; UAE’s Union National Bank PJSC; Macau’s Tai Fung Bank; and Kasikornbank (KBank), Thailand's fourth-largest bank by assets. 

The State Council, China's cabinet, announced this August that the country will further open to foreign investment. It said the world's second-largest economy will lower its restrictions on foreign investment in banking, securities, investment management and insurance, among other sectors.