Hong Kong banks major players in China

Hong Kong-based banks now hold over a third of all the profits and assets made by foreign banks in China.

Beijing reported that 14 Hong Kong-based banks established branches in the mainland in the nine years after China and Hong Kong signed the Closer Economic Partnership Arrangement (CEPA) in 2003.

These banks today account for 38% of total profits; 35% of total assets and 42% of the total number of branches of overseas banks operating in China.

And the number of Hong Kong-based banks in China is increasing. Six more Hong Kong banks had invested in or bought shares of six mainland-based banks this year until June.

CEPA relaxed restrictions on Hong Kong banks that want to invest in or buy shares of mainland commercial banks. It also lowered the requirements of the asset size Hong Kong banks must have to set up branches on the mainland. CEPA also gives preferential policies and measures to Hong Kong service providers to enter the mainland market.