China the next frontier for CBA
(30 November 2004 – Australia) Commonwealth Bank of Australia chief executive David Murray has acknowledged the "fantastic opportunities" that exist in China but said Australian financial services companies need to get in quick to unlock China’s potential.
Speaking at a conference in Sydney, Murray said financial organisations should have "formative banking investment in [China] and grow with it".
He said CBA preferred to partner with smaller banks rather than larger institutions.
"I am a little hesitant about the very large institutions in China because I think the Party will always want to keep ownership and control of a significant number of large institutions," Murray said.
Murray’s comments come just days after the China Banking Regulatory Commission rubber stamped CBA’s 11 percent stake in Jinan City Commercial Bank – the leading commercial bank in Shandong Province.
"Our view is to have small investments which can grow very rapidly," he said.
But Murray played down rumours that have been doing the rounds that CBA is eyeing a stake in China’s Hangzhou City Commercial Bank.
He went on to say that Australia was not a major manufacturing nation like the US and that US banks benefited from having manufacturing and exporting clients.
"It was very easy for those clients to take their bank with them – we never had that flow-through."
As a result, he said Asia represented a significant opportunity for Australian financial institutions to grow their businesses.
He said CBA preferred to partner with smaller banks rather than larger institutions.
"I am a little hesitant about the very large institutions in China because I think the Party will always want to keep ownership and control of a significant number of large institutions," Murray said.
Murray’s comments come just days after the China Banking Regulatory Commission rubber stamped CBA’s 11 percent stake in Jinan City Commercial Bank – the leading commercial bank in Shandong Province.
"Our view is to have small investments which can grow very rapidly," he said.
But Murray played down rumours that have been doing the rounds that CBA is eyeing a stake in China’s Hangzhou City Commercial Bank.
He went on to say that Australia was not a major manufacturing nation like the US and that US banks benefited from having manufacturing and exporting clients.
"It was very easy for those clients to take their bank with them – we never had that flow-through."
As a result, he said Asia represented a significant opportunity for Australian financial institutions to grow their businesses.
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