A Financial Times Service
China Confidential - Premium Investment Insight
24 August 2012

Fierce competition for offshore renminbi (CNH) deposits is slowly eroding Bank of China’s market share in Hong Kong. The total amount of CNH deposits held at the bank’s offshore subsidiary fell by 17% to around Rmb130bn ($20bn, £13bn, €16bn) in the first half of this year, while its market share declined from 27% to 23%, according to estimates compiled by Barclays (see chart 1). In our view, Bank of China Hong Kong’s (2388:HKG) market share will remain under pressure if liquidity conditions in the CNH financial markets continue to deteriorate. 

CC-LOGO-LARGE

CHINA CONFIDENTIAL

An integrated research service from the Financial Times that provides premium, exclusive analysis and predictions on China investment themes.

Using a dedicated FT team of specialists in China and the UK, it taps Chinese sources from the grassroots to the political elite to forecast key trends and issues. It conducts proprietary research to supply its own insights into industry trends and consumer sentiment. By filtering the work of the best Chinese analysts and academics, it keeps you current on key debates as they unfold inside mainland China. Its broad aim is to help the professional investor navigate through the Chinese investment landscape.

COOKIE POLICY

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time. Find out more about our cookie policy.