chapter  3
15 Pages

Entry behaviour of foreign banks in the Chinese banking market

ByYUE XU, JOSEPH G. NELLIS

Since the economic reform of the People’s Republic of China (China) was started in 1978, foreign multinational banks (hereinafter also referred to as foreign banks) have re-entered the Chinese banking market.1 However, the market penetration of foreign banks has followed a gradual process. Over the years, the total assets of foreign banks have represented around 2 per cent of the total assets of the whole Chinese banking sector (Leung and Chan, 2006).