Private banking center eyes super rich
Updated: 2007-08-11 05:10
By Michelle Leung in Guangzhou(HK Edition)
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and Hui Ching-hoo in Hong Kong
Shenzhen-based China Merchants Bank (CMB) opened the city's first private banking center early this week, marking its entry into the mainland's fledgling high-end wealth management market that is currently dominated by foreign giants.
The city's super rich with minimum assets of 10 million yuan will be the target customers of the mainland's sixth largest lender. The threshold is much higher than Bank of China's (BOC) 1 million yuan. BOC is the first domestic lender that has opened a private banking service in Shanghai and Beijing in April.
CMB's center, built on a land of 1,200 square meters, will "provide complete and tailored personal asset management solutions to clients instead of selling one-size-for-all financial products," said Wang Jing, a manager from the bank's private banking division.
Vice-President Tang Zhihong said CMB might open such service in other economic hubs in future.
Wealth management is new to many mainlanders who got used to depositing their money in banks. But bullish stock and property markets have lured many of them to convert their savings into shares and houses in past few years.
"The awareness of managing the wealth is apparently on the rise," said Kenny Tung, an analyst with Tung Tai Securities, adding that the launch of the private banking center by CMB was just timely. "Domestic players are now also eyeing the pie."
Foreign banks such as BNP Paribas, Citibank and Deutsche Bank have already begun private-banking operations in China.
CMB is a relatively young bank but is well known for its expertise in exploring the high-end market in affluent regions such as Pearl River Delta and Yangtze River Delta.
Shenzhen - home to many rich mainlanders, Hongkongers and Taiwanese - will offer a good customer pool for CMB, which has been operating in the city for two decades.
CMB, which trades shares in Shanghai and Hong Kong, is regarded by some fund managers and analysts as the best managed bank on the mainland.
(HK Edition 08/11/2007 page3)