Meet China's first rural joint venture bank
February 28, 2012 | BY
clpstaff &clp articlesThe first rural joint venture bank has opened in Ningbo – a sign of the increasing modernisation in China's regions
Ningbo, a port city in eastern China's Zhejiang province is now home to the country's first regional joint venture bank. The Bank of China and Fullerton Financial Holdings, a subsidiary of Singapore-based Temasek Holdings, jointly established the joint venture BOC Fullerton Bank on February 21, 2012, according to Xinhua.
While the threshold for entry into this market is likely to be lower, the local authority retains control in some areas and investors need to position themselves well for the different market conditions.
“Investors need to come to a consensus with domestic partners on business strategies, corporate management and proposed aims. More importantly, they should tailor products to the needs of the rural population,” said Sun Hong, a partner at Norton Rose in Shanghai.
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