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DBS launches consumer banking in China

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DBS' Beijing Branch gets go-ahead for renminbi business

Singapore, May 25 2005 - DBS Bank officially launched its consumer banking business in China today at its newly-relocated Shenzhen Branch.

The Branch, set up in 1993, moved to new premises in the central business district of Shenzhen in southern China. In addition to serving foreign and local enterprises, it now offers personal banking services and a range of financial products to foreign residents. The products include Renminbi (RMB) and foreign currencies savings and time deposits, mortgage loans, remittances and foreign exchange services.

The Shenzhen Branch is the first among DBS' three branches in China to offer retail banking services. Plans are afoot to extend similar services to branches in Shanghai and Beijing in the next 12 months.

Under China's banking regulations, foreign banks must be specially licensed to conduct RMB businesses, and they can do so only with foreign individuals and corporations and local enterprises. They are not permitted to offer RMB services and products to local Chinese nationals.

DBS was among 10 foreign banks in Shanghai to receive a RMB licence in 1998 to conduct RMB business with foreign-invested enterprises and foreign individuals. Subsequently, DBS Shanghai and Shenzhen branches were allowed to extend its RMB dealings to Chinese corporations in 18 designated cities as well as the Jiangsu and Zhejiang provinces.

Chairman of DBS Bank (Hong Kong) Frank Wong said: "I'm pleased to announce that recently, our Beijing branch has also obtained approval from the China Banking Regulatory Commission (CBRC) to start preparing for our RMB business.

"The new licence, together with the launch of our consumer banking services in Shenzhen, are part of a broader DBS plan to offer corporations and residents in China the same full suite of innovative and high quality services and products that our customers in Singapore and Hong Kong have come to expect from us.

"DBS sees tremendous potential for the growth of financial services in China as its economy continues to expand and its corporations and residents look increasingly to innovative financial solutions that help them manage their wealth."

Shenzhen, in the Pearl River Delta, is an integral part of DBS' strategy of following and supporting its customers as they expand into China. Many of them are existing clients of DBS which is the fifth largest banking group in Hong Kong.

According to official statistics, there are more than 9,000 Hong Kong-funded enterprises in Shenzhen with a total investment of over US$20 billion by the end of 2002. The implementation of the Closer Economic Partnership Agreement last year further deepened ties between Shenzhen and Hong Kong.

Richard Leung, Country Head for DBS China, said: "Following the opening of our Dongguan Representative Office last year, we are excited about the launch of our consumer banking business in China, kick-started by the Shenzhen Branch. It reflects our commitment to expand our operations and our product offerings in arguably the most dynamic country in the world today.

"Although we are currently restricted in whom we can serve at the retail level, we believe that the experience gained and our growing brand visibility will put us in good stead when the financial market is fully liberalised at the end of 2006."

Leveraging on its established capabilities in Hong Kong and Singapore, DBS has helped Chinese companies raise funds in the capital markets in those two cities, a notable example being last year's HK$609 million public listing for Li-Ning Group, China's leading sportswear company.

DBS is also active in China's loan syndication market and was behind several marquee mandates including a US$215 million syndicated team loan facility for Hebei Pan Asia Long-Teng Paper Co. Ltd. It also arranged a 10-year RMB1.037 billion project financing for Vopak Shanghai Logistics, the first long-term RMB project financing deal arranged and funded by an international bank.

The Shenzhen Branch started as a Representative Office in 1992 and was upgraded to a full branch in the following year. DBS has three other branches in Beijing, Shanghai and Guangzhou, and three representative offices in Tianjin, Fuzhou and Dongguan.

About DBS

Headquartered in Singapore, DBS is one of the largest financial services groups in Asia. The largest bank in Singapore and the fifth largest banking group in Hong Kong as measured by assets, DBS has leading positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund raising. Beyond the anchor markets of Singapore and Hong Kong, DBS serves corporate, institutional and retail customers through its operations in Thailand, Malaysia, Indonesia, India and The Philippines. In China, the bank has branches and representative offices in Shanghai, Beijing, Guangzhou, Shenzhen, Fuzhou, Tianjin and Dongguan. The Bank's credit ratings are one of the highest among banks competing in the Asia-Pacific region, and the highest among banks in Singapore. More information about DBS Group Holdings and DBS Bank can be obtained from our website www.dbs.com.