Three small Hong Kong banks will take advantage of the Closer Economic Partnership Arrangement (CEPA) between Hong Kong and the mainland to establish branches in Shenzhen, Guangdong Province, according to Chinese media.
The banks, Wing Lung Bank, Dah Sing Bank and Shanghai Commercial Bank will set up their first mainland branches after CEPA takes effect on Jan 1, 2004. The three banks have total assets valued between US$7.5 billion and US$8 billion. Under CEPA, Hong Kong banks are required to have a minimum global asset value of US$6 billion. The previous required asset value was US$20 billion.