The Golden Time of Hong Kong Banking: Collaborating with Mainland for Growth

1. The Golden Time of Hong Kong Banking:Collaborating with Mainland for Growth

2. Member List • Ma Hei Man, Mandy 034019 • Tam Sin Yee, Olivia 034007 • Ho Wai Man, Matthew 034021 • Hiu Lam Yan, Stella 034008

3. Introduction • Three main objectives in our project • Banking Services in Our Lives • Personal and Commercial Services’ Prospects • Opportunities in China

4. Introduction • Hong Kong’s banking sector is now having a commercial and market structural adjustments and transformations. • In the future, it will have a huge opportunity for developments.

5. Personal Banking Service • Banks have the transformation of their Personal Financial Services business in many years ago in order to meet the market demand. • one that takes to extensive banking customer portfolio • Insurance • Investment • wealth management products

6. Mergers and acquisitions • Mergers and acquisitions activities were highly active in Hong Kong's banking sector over the last 2 years.

7. WTO • China became a WTO member on 11 December 2001 • has made substantial concessions on foreign investment in the mainlands’ services economy

8. CEPA and QDII • Hong Kong's banking sector benefits significantly: • from the lower thresholds for market entry • conducting RMB business

9. Bank services in our life

10. Caution • Please pay attention • MC • Coupons will be given

11. Bank Services Education Saving Fund Deposits Saving Mortgage Annuities Credit Card Fire and Casualty Insurance Health Insurance Life insurance Loans Pension Fund Checking account

12. Bank Services • Children • Teenagers and Students • People who have work & Middle Age People • Old People

13. Children Fire and Casualty Insurance Loans Mortgage Health Insurance Deposits Saving Education Saving Fund Annuities Checking account Life insurance Pension Fund Credit Card

14. Teenagers and Students Fire and Casualty Insurance Loans Mortgage Health Insurance Deposits Saving Education Saving Fund Annuities Checking account Life insurance Pension Fund Credit Card

15. People who have work & Middle Age People Deposits Saving Education Saving Fund Mortgage Health Insurance Loans Life insurance Checking account Fire and Casualty Insurance Annuities Pension Fund Credit Card

16. Old People Deposits Saving Education Saving Fund Mortgage Health Insurance Loans Life insurance Checking account Fire and Casualty Insurance Annuities Pension Fund Credit Card

17. The World’s Local Bank?

18. Local Intelligent • Personal Banking • Automatic Banking • Personal Financing • Commerical Banking

19. Local Intelligent • Automatic Banking • ATMs • 596 ATMs in HK • ATM card design in 1960s

20. Local Intelligent • Automatic Banking • ATMs • 596 ATMs in HK • ATM card design in 1960s • Securities level is low • Criminal crimes always happen • E-Banking • Introduced in 2000 • Full services • Efficient and Effective • Easy to use

21. Local Intelligent • Automatic Banking • Disadvantage • Securities level is low • Criminal crimes always happen

22. Local Intelligent • Automatic Banking • Disadvantage • Securities level is low • Criminal crimes always happen • Result • Queue in the branch • Waste resources • Loss customers

23. Local Intelligent • Automatic Banking • Suggestion • Introduced new ATMs card • Enhance Internet securities level • Educations

24. Local Intelligent • Personal Financing • Classified customer • Premier Account • PowerVantage • Professionals manage and give advice

25. Local Intelligent • Personal Financing • Spread to more customer • Revenue from management of assets • Revenue more than traditional counter services

26. Local Intelligent • Commercial Banking • Develop SMEs Centre • Provide Professional advice • Win-Win situation

27. International Financing • Road to the North • CEPA • Provide preferential treatment • Bank, Securities and Future included • Easier to set up in Mainland China

28. International Financing • Road to the North • CEPA • Provide preferential treatment • Bank, Securities and Future included • Easier to set up in Mainland China • QDII • Qualified Domestic Institutional Investor • Allow Chinese citizens to invest in overseas

29. International Financing • Advantage from CEPA • Easier to set up branches in Mainland China • Develop a network in the national • Experience in Banking industry

30. International Financing • Advantage from CEPA • Easier to set up branches in Mainland China • Develop a network in the national • Experience in Banking industry • Advantage from QDII • More money get into Banking system • Asset management revenue more

31. Opportunities in China

32. Important Factors of Economic Development • A complete law system and control system • a wealth of talents • a fast wide supply of information • an active market • an effective banking system

33. Advantages • knowledge of the features of the market e.g. the changes of the policy • knowledge of social environment and culture background • the large number of enterprisers from Hong Kong customer base of the banks from Hong Kong

34. Fig 1 判斷經濟形勢"正常"的銀行佔比 Fig 2 銀行家信心指數 Fig 3 銀行業景氣指數 Fig 4 銀行業景氣指數 FUTURE PROSPECT BY BANKERS

35. Other Data about the Future Prospect 十五”时期城乡居民生活改善情况 Source: 社會保障部、國家統計局網站

39. Conclusion • Hong Kong as an International Capital Formation Centre • Platform for Global Investment for the Mainland • QDII • will make the business in wealth management of banks in Mainland China grow up positively • will solve the problem in increasing Renminbi.

40. Q & A

41. Q1 What is the full name of QDII? • Qualified Domestic Institutional Investor • Quantity Domestic II • Quality Demand In Investment

42. Q2 What are advantages from CEPA? • Easier to set up branches in Mainland China • Develop a network in the national • Experience in Banking industry • All of the above

43. Q3 Which service(s) is/ are provided for people who have work & middle age people? • Mortgage • Loan • Life Insurance • All of the above

44. END