BEA already has the most profitable branches of any foreign bank in the country. Within the next two or three years, it plans to upgrade its seven representative offices to full branches to add to its current six branches and one sub-branch. BEA is also just one of five foreign banks with a licence to conduct business in renminbi. Earlier this year it signed an agreement with the commercial banking arm of state-owned China Everbright Group, which will provide credit lines for renminbi business. The number of its Internet clients has surpassed 110,000, of which about one-third are new customers.
Customers can apply for a mortgage on-line and receive approval in principle.
Five years after China's entrance into WTO, when foreign banks will be able to start servicing local retail customers, cyber-banking will help BEA get around Chinese restrictions on opening new branches, Li reckons. We will copy the Hong Kong model. China is going to be the market of the future, and if you are not in the China market, you are not in the market at all. Bank officials think China's entry into the WTO will bring new business from top multinationals eager to expand or start new operations there. BEA plans to increase loans to Hong Kong-based companies active on the mainland and to joint ventures.