Thursday, 17 July 2014
TV NZ 16 JULY 2014 - CHINESE BANKS SET UP IN NEW ZEALAND
Three Chinese banks that are among the top 10 biggest companies in the world are setting up branches in New Zealand. The banks are cashing on the dramatic growth in trade between New Zealand and China and amid predictions it will continue rising. The Industrial and Commercial Bank of China (ICBC) was granted a banking license late last year, while the China Construction Bank (CCB) received a license this week and the Bank of China (BOC) is reportedly working on one. All three are listed by Forbes magazine in the top 10 biggest listed companies in the world. That means they're all bigger than the likes of BP, Apple and Walmart. Former Prime Minister and now chairman of the CCB, Dame Jenny Shipley, says the banks' new found interest in NZ is all about trade. "The volumes of trade that are flowing both ways between New Zealand and China and China and New Zealand have grown dramatically in the last three or four years, and also the projections until 2020 are that there is significant growth." In the past rising house prices have been in part blamed on a rise in Chinese investment, but Ms Shipley says it's too early to speculate whether the new banks could make it cheaper and easier for Chinese investors here. "I think that over time these banks will put competitive pressure on other banks and that will be good for customers," she says. Claire Matthews from Massey University's Centre for Banking Studies says that the Reserve Bank's rules will ensure a level playing field. "Any bank that has a substantial presence in the retail market must get most of their funding from the domestic market and therefore the funding will cost the same as it would for any of the other banks that are here, so that's not going to allow them to do anything really cheaply," she says.
Posted by Kingsland Wolf at 11:52