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ABN Amro Bank of the Netherlands is to open its fifth branch in China on Thursday in the southwestern municipality of Chongqing.

 

According to the municipal banking regulatory commission, the branch will offer private and corporate wealth management services for high-end clients and small and medium-sized businesses.

 

The bank has set up four branches in Beijing, Shanghai, Shenzhen and Chengdu, and has representative offices in Guangzhou, Wuhan and Tianjin.

 

Over the past month, HSBC opened a branch in Xi'an, while the Hang Seng Bank received approval to open a branch in Chengdu and the Bank of East Asia (Hong Kong) was given the go-ahead for a Shenyang branch.

 

Overseas-funded banks have strived to expand their presence in central, western and northeastern China since new regulations took effect on Dec. 11 last year, allowing them to conduct RMB business for Chinese citizens.

 

Under the regulation, the government promised preferential policies to foreign-funded banks that opened in relatively underdeveloped areas.

 

The measure would help the government's western development strategy, said Wang Jiefeng, a senior manager with the ABN Amro China.

 

The government has strengthened efforts to boost development of its central, western and northeastern areas, providing more investment, preferential tax rates and flexible policies.

 

(Xinhua News Agency January 18, 2007)