Foreign lenders looking for tips on good potential partners often appear to take cues from the IFC: in one of several examples, the IFC proposed an investment in the Bank of Beijing by the end of 2004 and ING Groep NV took a 19.9% stake this March.

China Huaxia Bank Co, a medium-sized bank with a nationwide branch network, is the smallest of China’s five domestically listed shareholding banks.

China’s first privately owned bank, China Minsheng Banking Corp, is likely to be the top choice for foreign banks, given its nationwide networks and good financial health. The Beijing-based bank’s biggest shareholder is New Hope Capital, a unit of livestock feed conglomerate Sichuan New Hope Agribusiness Corp, which owns a 6.98% stake.

International banks are looking for a piece of China’s banking market. Kazuhiko Shimizu, in Shanghai, sizes up the most promising acquisition targets.
The race is on to get into the market but finding suitable acquisition targets is not easy. Getting involved with the big four state-owned banks, laden with non-performing loans, would be tricky.

governor, China Merchants Bank
Chinese bankers are often low-key state-employed bureaucrats whose names are rarely known outside the industry. One exception is Ma Weihua, president of the small but highly regarded China Merchants Bank (CMB).

general manager and head of corporate lending, Bank of East Asia
If Adrian Li, 31, succeeds his father David Li as head of the Bank of East Asia, as widely expected, it would be another milestone for the Li family, which founded the bank in 1918 in Hong Kong.

Jin Renqing, Finance Minister, China

Insisting on majority control, it took Nestlé most of the 1980s to negotiate its first direct investment in China. At that time, even one of the world’s largest and best capitalised multinationals was nervous about doing such a deal.

Morgan Stanley’s China business is highly profitable, says co-head of China investment Jonathan Zhu. He tells Karina Robinson, in Beijing, about the bank’s winning strategies.
China may be slowing down as the authorities cut back on credit availability but foreign investment banks’ business is being boosted: as the government puts the brakes on credit, domestic companies are turning abroad for their funds and Morgan Stanley is one of the beneficiaries.
The US-headquartered investment bank ranks number two in Chinese equity capital markets in the year-to-date with a deal value of $2589m, giving it a 19% market share, according to data provider Dealogic.

Hong Kong’s Financial Secretary Henry Tang tells Karina Robinson the reasons he believes are behind the resurgence of China’s Special Administrative Region.
Q To what do you ascribe Hong Kong’s economic recovery? You have upgraded your forecasts to 7.5% GDP growth in 2004.
A A combination of factors. They say timing is everything and I agree. In the first quarter of 2003, when I was Secretary of Commerce, Industry and Technology, the figures were already showing signs of recovery. Unfortunately, the light at the end of the tunnel was the headlight of an oncoming train. It was a situation where a budding recovery was ruined by one quarter of [the respiratory disease] SARS. [But in addition] the Free Trade Agreement was signed with the People’s Republic of China. [People saw that the mainland government] was prepared to put money where their mouth is. It is not just one country two systems, they also support us and help us improve our situation [for example through allowing] individual travel [for China mainlanders]. Also, Hong Kong people are particularly adaptable and resilient. I have lived in Hong Kong for the better part of my life and have seen Hong Kong come through many crises.