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BNP Paribas expands in China, and launches a private bank in Shanghai

BNP Paribas launches a private bank in Shanghai. Established in this sector for many years in Hong Kong, Singapore and in India, BNP Paris opened its private banking business in Taiwan at the beginning of 2005. The bank is continuing to strengthen its services aimed at a clientele requiring wealth management – an area undergoing rapid expansion. The group intends to set up a twenty-strong team to develop the activity. To begin with, the team will be providing information to clients, and offering straightforward foreign currency and investment fund products on the Chinese market. The range of services will then expand as the clientele grows, and as local legislation with regard to investment abroad by Chinese nationals develops.

The number of Chinese with incomes over 1 million dollars, currently running at about 250,000, is rising by 15% every year. So the demand for capital and asset management is intensifying. A large international bank such as BNP Paribas, which benefits from a wide private banking clientele in the region — 7,000 people — and which, according to Asiamoney, is ranked 5th of all private banks in Asia. According to a study carried out by the same journal, BNP Paribas is considered by many client segments to be the best private bank in Mainland China.

Established in China since the beginning of the 1980s, BNP Paribas has undergone constant expansion in the region. In 1992, the bank set up a branch in Shanghai, owned 50-50 with ICBC, and purchased the ICBC shares in 2003. Then at the end of 2005, BNP Paribas again strengthened its presence in China in retail and financial banking by acquiring 19.2% of Nanjing City Commercial Bank, the 8th largest commercial bank in China, with 58 branches, 1.2 million personal clients and 60,000 corporate clients.

BNP Paribas has been present in the People's Republic of China since 1980 and now operates four branches in Beijing, Shanghai, Guangzhou and Tianjin, in addition to its wholly-owed subsidiary BNP Paribas (China) Ltd as well as a sizeable presence in Hong-Kong. BNP Paribas has strong ambitions for its development in mainland China and enjoys prominent positions in corporate banking, export and project finance, global trade services and fixed income activities. Thanks to its full RMB and Derivatives licence and its granting of a Qualified Foreign Institutional Investor status in 2004, BNP Paribas offers to its clients a comprehensive range of products.

In 2003, BNP Paribas was among the first foreign banks to establish two joint ventures, playing its part in China's financial markets reform:

  • Changjiang BNP Paribas Peregrine Securities, in Investment Banking (leader in the listing in Hong Kong of PRC companies).
  • Shenyin & Wanguo BNP Paribas Asset Management Co. Ltd, in Asset Management.

Nanjing City Commercial Bank
NCCB is the 8th largest city commercial bank in China, with total assets of RMB 42.7 bn (US$ 5.3 bn), a loan portfolio of RMB 22.5 bn (US$ 2.8 bn), and RMB 35 bn (US$ 4.3 bn) in deposits (as of end of September 2005). The NCCB network comprises 58 branches in the city of Nanjing and employs nearly 1 500 people. It is active in corporate lending, trade finance, mortgage lending as well as securities dealing. It has benefited from very significant growth during the last few years, with CAGR for total assets of 20%, while maintaining the good quality of its portfolio with Non Performing Loans ratio of 3.4% as of end of September 2005.