China banks still encountering big risks despite going global

Chinese banks are seen to accelerate overseas expansion by boosting marketing strategies and providing services and financial instruments for high-end customers.

China's banks should strengthen their management and look for strategic alliances to improve their global competitiveness as the world economy recovers from the financial crisis, bank executives and experts said at the 21st Century Annual Finance Summit of Asia held in Beijing late last month.

It is inevitable that Chinese banks will search for growth overseas, said Luo Xi, vice-president of Industrial and Commercial Bank of China (ICBC).

"The internationalization of clients requires offshore expansion," he said.

Domestic banks have renewed interest in overseas mergers and acquisitions (M&As) after a 2008 ban was lifted.

Chinese banks retreated two years ago after ill-fated investments in companies such as Fortis, Blackstone and Morgan Stanley.

"Having experienced the crisis, Chinese banks have now increased their resistance to risk," Luo said.

View the full story in People's Daily Online.