Better late than never. About 150 years after establishing a Shanghai branch in 1858, the British lender Standard Chartered is finally incorporated locally in China. The new entity, registered as Standard Chartered Bank (China) Ltd., is headquartered in Shanghai.

It is listed both in London and Hong Kong, and 95 percent of Standard Chartered's profit comes from investment and services in emerging economies in Asia, Africa and the Middle East.

"Development in the Chinese financial industry is a brand new chapter for us and for the banking industry as a whole," a Standard Chartered statement reported, adding the bank "is excited with the opportunities that are emerging."

The bank will be transferring business from its current branch network in China to the local subsidiary during the incorporation process. Standard Chartered will no longer retain a foreign bank branch or booking branch in China.

During this transitional period, Standard Chartered reassured its clients that terms and conditions of their original accounts and agreements with the bank will remain unchanged.

Smooth sailing

Standard Chartered performed remarkably well in the Chinese market in 2006. According to its 2006 annual report for China, total revenue doubled and profits tripled from the previous year. Global revenue for the bank grew 26 percent. Performance was backed by the fast-growing economy and by the easing of regulations over foreign financial institutions.

Foreign banks are gaining considerable profit due to wider access to individual Chinese customers. This comes following the opening of China's banking sector late last year in an effort to meet its World Trade Organization commitments.

"We expect 2007 will be an exciting year," said Katherine Tsang, CEO of Standard Chartered in Shanghai. "After the bank is locally incorporated, it will provide more products to its clients to cater to their specific needs."

Globally, Standard Chartered's consumer banking business is aligned based on four key business lines: wealth management, credit cards and personal loans, small and medium-sized enterprises service and mortgage lending.

"Standard Chartered will be able to tap into our global network and local expertise to customize financial solutions that will suit our customers here in China," said Wang Ping, public relations manager of Standard Chartered, Beijing.