8 overseas lenders allowed to sell funds
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E-mail Shanghai Daily, July 3, 2013
Overseas banks aim to increase their market share to boost revenue after receiving the green light from the China Securities Regulatory Commission to sell mutual funds on the mainland.
Citigroup was one of the eight overseas banks that have received the license that allows them to distribute funds on the mainland last week.
Meanwhile Citibank China, the US lender's mainland subsidiary, said it sold its first fund product products of Invesco Great Wall Fund Management Co and Manulife Teda Fund Management Co at one of its Shanghai outlets after officially launching the business yesterday. The service will be available to retail investors nationwide in phases, according to a statement released by Citi yesterday.
But even as foreign banks on the mainland vie for new business opportunities like fund distribution, they are constrained by their smaller service network and lower customer base.
HSBC, the biggest foreign bank in China by network, has about 300,000 retail customers on the mainland, including inactive accounts, while United Overseas Bank has around 10,000, according to a foreign bank source.
The other five overseas banks that were also granted the business license are Standard Charted Bank, DBS Bank, Hang Seng Bank, Bank of East Asia and Nanyang Commercial Bank.
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