American and Chinese officials are likely to introduce a memorandum of understanding (MOU) on closer cooperation between US and Chinese banks as part of a strategic framework to be unveiled during President Obama’s state visit to China, the South China Morning Post reported. The MOU would encourage investment by Chinese banks into small and medium-sized US banks, and would represent a shift in US attitudes toward Chinese investment. Despite the easier access, Chinese bankers said they remain cautious about investment opportunities in the US financial industry; several earlier investments by Chinese lenders in Western banks have proven unprofitable, and Chinese banks appear to favor investments in the Asia-Pacific region and developing markets.
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