Liu Mingkang on HARDtalk

Tuesday, April 8, 2008 22:34
Posted in category Uncategorized

[youtube width=”425″ height=”335″]http://www.youtube.com/watch?v=rxuBUpJ5qy0[/youtube]

Liu Mingkang, Chairman of CBRC and PBOC, is interviewed by Stephen Sackur for the show HARDTalk.

the interview covers a range of issues, including

  • China’s economic decoupling – and U.S./ E.U. reverse coupling
  • Balance of Power – U.S. economy getting weaker/ China getting stronger
  • Banking industry in China

Chairman Liu does a good job overall of handling Sackur, especially when asked about the Chinese banking industry, the role of the government in the banking industry, and restrictions China places on foreign banks.

The best exchange is in the area of the banking industy, and whether or not China offers a level playing field

Sackur starts off by saying E.U. Commissioner Peter Mandelson said the industry was closed, that there wasn’t a level playing field.. where Liu responds simply that Madelsen thinks that way because he hasn’t spent enough time in China and says that there are 250 branches of banks from 71 countries in China.

For Sackur that isn’t enough though as these 250 are having to compete with the 10,000s of Chinese banks and a EU Chamber of commerce report showing that Foreign banks held less than 2% of assets in China.

now.. it is at this point that the interview gets cut off, and so we cannot get the response, but my question would be how open is the EU .. or the US. to Chinese banks? I can go to nearly any 2nd tier city in China and see an HSBC, but could you say the same about the U.S.?

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3 Responses to “Liu Mingkang on HARDtalk”

  1. Levin says:

    April 9th, 2008 at 8:45 am

    The question is: Is there any rules and regulation against having Chinese banks in US, or is is just lack of business opportunity (of making lots of money) in the US ? HSBC makes a lot of money in China, and would certainly want to open lots of branches in China. Why would any Chinese bank open up branches in US ?

  2. Rich says:

    April 9th, 2008 at 9:07 am

    Levin,

    True. I guess, some of the reason why Bank of China is limited in the US is that the market isn’t really geared towards a bank used to 40% savings, but I would expect that if BOC went on a branch spree across the US (they have the money).. it would not go well.

    Also, I think another question should be asked as to what the real barriers to expansion are for HSBC, and others. Is it the licensing (HSBC has at least 15 cities now, so I would say they are ok there) or is it the inability to get the real estate they want (probably is an issue in some cities) or is it that there isn’t enough talent in the market?

    R

  3. Tony says:

    April 16th, 2008 at 3:38 pm

    Well, there’s plenty of HSBC branches in Silicon Valley. Heck, I can get a US mortgage from HSBC (in fact HSBC was doing a lot of US subprime lending and guarenteeing – real smart, guys!). Chinese nationals can get mortgages in the US – but US nationals can’t do the same in China – just another example that the Chinese financial sector isn’t open.

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