StanChart has big plans for biz in China

Standard Chartered will focus on the further opening-up of China's financial sector while the country, which is at the heart of its operation, will steadily expand institutionalized opening-up with regard to rules, regulations, management and standards, said Bill Winters, group chief executive of Standard Chartered PLC.

"As China's opening-up becomes increasingly more important and prevalent, we think it's a critical area for us to continue focusing on and it has worked well, especially being in the stage of institutionalized opening-up," said Winters during his first visit to China since 2020 to attend the three-day China Development Forum, which wrapped up on Monday.

"Part of the reason that it's such a pleasure to be in Beijing is that our growth opportunities are very much aligned with China's strategic priorities," he said.

Standard Chartered has been an active participant in cross-border payments and investments, foreign exchange and risk management, the Belt & Road Initiative, and green and sustainable finance, which has been a key area of focus for the group, he said.

"For us, it has meant a substantial double-digit growth in China in each of the past three years despite the ups and downs of the global economy. We are investing very heavily to further promote our growth and China's institutionalized opening-up, and play our role as a connector between the different markets in which we operate," he said.

Last year, Standard Chartered announced it would invest $300 million in China-related business in the next three years.

"We've made very good progress so far. We received some new licenses, which will involve further investment," Winters said.

In January, Standard Chartered Bank (Hong Kong) Ltd obtained regulatory approval to set up a wholly foreign-owned securities company in Beijing, which will further enhance the group's position in China's onshore capital markets.

"We invested heavily in the infrastructure that will support China's institutionalized opening-up, including cross-border payments, currency risk management and domestic payments to support cross-border business. We also continued to invest in our wealth management products and services," Winters said.

In addition to a technology and operations center in Tianjin, the group set up another such center in Guangzhou, Guangdong province, with a target of hiring 1,000 people, to support its broader China business.

Currently, the country's further opening-up and the global expansion of Chinese companies are relying heavily on high-standard economic and trade agreements such as the Regional Comprehensive Economic Partnership agreement, said Jerry Zhang, executive vice-chairman and CEO of Standard Chartered China.

"Our business related to the ASEAN trade corridor grew by more than 60 percent in 2022. Customer activities in South Asia and the Middle East have remained strong. In recent years, we have been constantly seeing Chinese customers in these regions and have deployed many Chinese-speaking employees," Zhang said.

In addition, Standard Chartered is committed to making the internationalization of the renminbi a development strategy for the group, hoping to cooperate with its clients and China's central bank in their long-term strategic goals in this area.

Regarding the Belt and Road Initiative, Standard Chartered completed more than 130 projects in the countries and regions involved last year and 40 percent of the projects met the environmental, social and governance standards of the United Nations.

Standard Chartered is committed to incorporating more green development concepts into BRI-related projects in the future, Zhang said.

She applauded the great strides China has made in further opening up its financial sector in recent years.

"In terms of market access, there are now few barriers left, although we are still striving for business licenses in some specific areas," Zhang said.

"I think it is worth anticipating changes based on the concept of differentiated regulations proposed by Chinese financial regulators. The balance sheets of foreign banks in China are relatively small and regulators hope that these banks can develop healthily and sustainably in the country. In this regard, it is probably necessary to have a bit of flexibility in certain aspects of regulation. This is something we are looking forward to," she said.