Hong Kong


	The Japan Times WORLD EYE REPORTS HONG KONG

©THE JAPAN TIMES	Wednesday, June 26, 2002

A sharper focus on mainland China

China's entry into the World Trade Organization (WTO) provides Hong Kong banks with a major opportunity. Under its agreed commitments to the WTO, China must open all areas of banking to foreign institutions within five years. This will allow foreign banks full access to take renminbi deposits, offer banking services and undertake lending activities.

As of now, there are a small number of Hong Kong banks that have obtained limited licenses to conduct business in renminbi, giving them the "first mover" advantage. One such bank is Asia Commercial Bank (ACB).

Robin Chan, chairman of Asia Commercial Bank

Chairman Robin Chan states: "The bank continues its commitment and presence in China. Our branch in Shenzhen, which affiliates with the representative offices in Shenyang and Shanghai, continues to explore new businesses in the mainland and grasp the opportunities brought by the entry of China into the WTO."

Part of the Asia Financial Group, ACB has been a reliable partner to some of the region's most respected individuals and institutions for over 65 years. ACB provides comprehensive retail, commercial, corporate and private banking services and is guided by the simple philosophy: "To surpass our clients' every expectation and deal in absolute trust."

Despite the problems that currently face the Hong Kong economy, the Asia Financial Group continues to provide return for shareholders, jobs for hundreds of employees and good quality services to its clients.
Bernard Chan, Robin's son and the company's Deputy Managing Director, points out: "To gain economies of scale and remain competitive, we are increasing joint ventures and cooperation with other smaller institutions. We continue to identify new ways in which we can cooperate with them in order to maintain competitiveness with larger players while still maintaining our independence."

To illustrate Asia Financial Group's commitment to partnership, it became a founding member of the Bank Consortium Trust, an alliance of nine Hong Kong banks established to provide Mandatory Provident Fund (MPF) services. It is also a member of Hong Kong Life Insurance, an alliance of six local banks that provide life insurance products and an online banking consortium called Net Alliance.

"Asia Financial Group can no longer just be a Hong Kong player," says Bernard. "We must continue to look into China and we may have to join up with other local banks in order to do something in the that market together. Whether it be through alliances or mergers, there will definitely be a consolidation in Hong Kong. We need to specialize in certain things and the key is bringing in new business from the Mainland market. That is our focus."

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