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Exclusive | Bank of East Asia aims to open branch in Hainan, as China’s free-trade hub seeks overseas investment
- Bank of East Asia says its first branch in Hainan will come up in the provincial capital Haikou after signing an agreement with local authorities on Thursday
- Officials of some 30 banks are in Hainan this week as the province courts foreign investment to build itself into a trade and finance centre
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Bank of East Asia (BEA) plans to set up its first branch in Hainan province, as officials in China’s largest free-trade hub court foreign investment in the financial sector.
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The Hong Kong-based bank’s foray into Hainan follows HSBC, which opened its first branch in the provincial capital Haikou in December 2021.
The bank’s operations in Hainan are expected to reach at least a few billion yuan in the first few years of operation, Ronald Ho, deputy CEO of Bank of East Asia (China), said in an interview with the Post.
“Some of our clients are very interested in exploring and expanding their operations in Hainan, so we would like to follow and try to serve them,” he said, adding that the province’s favourable policies, which are unique, also attracted the bank.
The Hong Kong-listed lender signed an agreement on Thursday with Hainan authorities to enhance cooperation in areas including wealth management, account settlement and cross-border investment and financing. The branch’s opening is pending internal bank approval.
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BEA’s foray into China’s biggest free-trade zone comes as the province aims to build itself into an international business hub with various favourable policies. With China quickening the pace of opening up of its financial industry, giving approvals to wholly owned mutual funds and entities by foreign financial institutions, Hainan is expected to greatly benefit as a pilot zone.
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