Domestic banks need to prepare for competition from foreign banks.
Domestic banks need to prepare for competition from foreign banks. According to News agency Xinhua , China Construction Bank's Chief Risk consultant Zhu Xiaohuang stated that as a result of the opening up of China's financial sector, domestic banks will face greater challenges from foreign banks. At the same time, many new opportunities will present themselves. Zhu said by the end of June 2006, 71 foreign-invested banks has set up 214 agencies dealing in local currency banking in 25 cities in China. In addition, 26 overseas financial institutes has purchased shares worth USD 17.9bn in 18 domestic companies.