Banks in China race to become local

More than 10 foreign banks are expected to set up local subsidiaries, the <i>Financial Times</i> reported. The group, which account for about half of the total assets held by overseas lenders in the mainland, would make the move under new rules announced last week which open the Chinese market to units of foreign banks incorporated locally. Wang Huaqing, assistant chairman of the China Banking Regulatory Commission, said detailed regulations would be released within the week. While some financial institutions have raised concerns about lack of clarity in the new rules, some international banks have already moved to take advantage of the new situation, the newspaper reported. Standard Chartered, HSBC, and ABN AMRO have all said they plan to move forward although Wang did not give details on existing or likely local incorporation applications.