In addition, China boasts 426 representative offices of foreign banks, twice as many as two years ago. Many others await approval to set up branch offices in the burgeoning market China opened the first group of coastal cities to overseas financial institutions in 1985. But some firms had established representative offices as early as in 1979. Now China is gradually opening up more cities to overseas financial institutions. Many of these foreign institutions are enjoying healthy profits in China.
Most foreign banks achieve a return on investment within two years of opening in China.
During the process, foreign banks brought advanced management styles and international trade clearance methods with them, helping to narrow the gap between China's financial sector and international counterparts. These financial institutions have widened fund-raising channels for China, provided services for joint ventures, introduced their clients to investment possibilities in China and helped promote China's foreign trade. Currently, twenty-three Chinese cities are open to foreign financial institutions. But foreign banks are not yet permitted to conduct business in the Chinese yuan or with Chinese companies or private citizens. The banks draw most of their customer base from foreign enterprises and joint ventures operating in China.