This article appeared in the Wall Street Journal on November 10, 2006. This article is about the banking market in China and the ongoing issue of foreign banking in China.
Citigroup (the article’s main focus) and other non-China based banks are facing difficulties gaining access to the market. Foreign banks have been forced to do business through Chinese banks and have yet to deal with individuals. China has been slowly taking steps to allow these banks to open branches and put ATM’s on their soil in order to reach their potential â€œbankableâ€ population of 300-400 million individuals. However, new rules and regulations have slowed this progress, if not set it back a step. It is very informative article on a topic that could have a huge effect on the way banking in China is going to be done in the upcoming years.
Here are some questions to think about while you read the article.
What are you interpretations for the future based on the paragraph on the first page?
How do you think allowing foreign banks to reach individual customers in China is going to effect the economy? How might it impact, in general, the way business is done?
Is Citigroup acting too aggressively at trying to reach individual customers? Is this a good strategy? Will other banks follow or continue to do business through Chinese banks?
What do you think about Citigroup being called â€œHua Qi”?
What do you think about China’s five year plan?
Does China seem to be as open as they say they are to letting foreign banking in? Are they delaying it to be as safe and conservative as possible? What are your thoughts on the three pages of requirements to be met before individual customers can be reached?
Submitted by Danny Allustiarti