Source: CCTV.com

05-23-2007 11:05

Foreign banks in China have begun mortgage services this week for Chinese residents. These services are expected to provide a significant boost to foreign banks in their efforts to attract more Chinese customers.

The Bank of East Asia launched full service in RMB at the start of this week. Bank officials say personal property services will be an important feature of their business. Chinese residents can receive a mortgage rate at less than 3 percent. This is lower than the rates of some Chinese banks.

"The launching of these new services shows that we're setting the same standard for ALL our customers. Foreign banks are not out of touch with the ordinary people," says Chen Zhiren, Vice President of Bank of East Asia Beijing Branch.

But this is by no means a common story. Other foreign banks, such as Citibank and HSBC, have only slightly lowered their requirements for people interested in taking out a mortgage. These requirements are still out of most Chinese residents' reach.

Consequently, experts think foreign banks will not acquire a major market share in the near future.

"The recent move shows they're trying to understand the local market and position themselves accordingly. I think no matter what strategy these banks use, the one who offers the best service will always win," says Prof.Zhao Xijun of Renmin University.

The government allowed foreign banks to provide services in Chinese yuan nearly a month ago. Some foreign banks think they can acquire up to 10 percent of China's market in another five years.

 

Editor:Chen Ge