Center

Witnessing the dawn of a new partnership

(Dicky Yip)
Updated: 2007-03-21 10:29

Although domestic banks have advantages of scale in terms of branches and customers, it will be a challenge for them to leverage those advantages. Foreign banks are focusing on certain customer segments and geographical locations, and they could easily erode local banks' seemingly established advantages.

In preparing for the complete opening up of the market, the cooperation of HSBC and BoCom brought benefits to each other, their shareholders and customers.

HSBC's contribution from China business last year more than doubled from a year ago to $700 million, with 70 percent coming from strategic partners in China. BoCom reported 33 percent growth in its net profit after tax to 12 billion yuan in 2006 and the non-performing loan ratio was the lowest in its history.

Retail customers gained from the international credit card that HSBC and BoCom co-branded as well as the high return from the QDII products by using investment vehicles in Hong Kong and elsewhere.