Singapore’s DBS Bank, which has operated in China for more than 30 years, is eyeing long-term opportunities in China, particularly in the Greater Bay Area (GBA), says DBS China CEO Ginger Chen in a new interview. He told Xinhua.
DBS Group recently received regulatory approval to increase its stake in Shenzhen Rural Commercial Bank, a joint-stock commercial bank in Shenzhen, Guangdong province, from 13% to 16.69%, Chen said.
“This is a good opportunity to build a positional base for expansion into GBA in the coming years,” Cheng commented on the recent developments.
DBS Bank entered the Chinese market in 1993 and established a representative office in Beijing. It was then incorporated in China in May 2007, making it Singapore’s first bank and one of the first foreign banks to incorporate in the country.
Mr. Chen, who joined the bank in 2001, has personally witnessed the growth and opening up of China’s financial market. “This includes continuing to lower entry standards for foreign capital, interconnecting financial and capital markets, and continuing to promote the internationalization of the renminbi,” Chen said.
The country’s great strides in embracing the international community have encouraged DBS Bank to actively participate in its opening-up initiatives and policy breakthroughs over the years. According to Chen, this participation has brought many new business opportunities to the bank.
As an example, he pointed to the bank’s involvement in the development of the China (Shanghai) Pilot Free Trade Zone (FTZ). DBS Bank was one of the first foreign banks to establish operations here and has provided trade finance, cross-border RMB capital pooling, and RMB offshore borrowing operations to businesses and financial institutions in the region. I did.
It was also able to enter China’s investment banking sector through the formal establishment of DBS Securities (China) in 2021, becoming one of the first companies to participate in the country’s RMB cross-border interbank payment system. Mr. Chen added.
Turning to the macro outlook for China’s economy in 2024, Chen is optimistic about the country’s growth prospects and new growth model. “We believe that a shift in the focus of China’s structural reforms from supply-side reforms to demand-side reforms could be compatible with China’s current and next stage of development.”
He also pointed out that China’s consistent trend of attracting foreign investment remains unchanged, thanks to its expanding market, well-developed industrial structure, diverse innovation application scenarios and rich human resources.
In this regard, Chen said that high-tech industry is an important driving force for China in attracting and leveraging foreign investment.
“Technologies such as artificial intelligence, biotechnology, blockchain, cloud computing, metaverse technology, and quantum computing are advancing and transforming Chinese society in fundamental and important ways at an accelerating rate,” Chen said. Stated.
Chen said the next step for DBS is to continue expanding its presence in China. “We will expand, deepen and sharpen our reach in key areas such as technology and innovation, manufacturing upgrades and energy transition, as well as continue to invest in related industries,” he said.