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Dame Jenny Shipley: Chinese banks in NZ a positive

August 27, 2014

Chinese Herald recently interviewed NZCC’s executive board member, Dame Jenny Shipley to discuss the significance of Chinese banks for New Zealand. Dame Jenny Shipley is an independent director of China Construction Bank of NZ.

Here’s a quick translation that gives an overview of the article…

Earlier this month, following the Industrial and Commercial Bank of China and China Construction Bank, Bank of China has also rented the top floor of the Twin Towers, located at 205 Queen Street Auckland. Although there is no news that the Reserve Bank of New Zealand has approved Bank of China’s application for a license to practice in NZ, but the arrival of the third major Chinese banks is an undisputable fact.

Chinese Herald: would the incoming 3 Chinese banks bring competition to the local banks, what kind of competition will there be?

Shipley: The competition to NZ banking sectors would benefit local residents and international business in NZ. In past years, NZ has relied heavily on Australian banking system. Trade between NZ and Australia has always been important, and the support of the banking system plays an essential part.

Today, China is a major trading partner of NZ. To have three major Chinese banks here to support China/NZ businesses, trade and investment is advantageous to NZ’s economic growth, it can also help to achieve the target the leaders of the two countries set for bilateral trade between two countries.

Chinese banks will have to compete for businesses like any other banks, and each bank has to rely on its own products and services to be competitive in the market.

Chinese Herald: What influence would Chinese banks have on the NZ economy?

Shipley: No matter what products and services the Chinese banks will have, it’ll be beneficial for NZ consumers, because there will be more financial products for the consumers to choose from. Financial transactions between two different cultures are often complex. China Construction bank understands both NZ and Chinese market, so its customers will benefit from this knowledge.

Chinese Herald: Some analysts say that NZ rely too much on exports to China, what’s your view on this?

Shipley: I don’t believe NZ is overly dependent on exports to China.  The wealth of NZ has always relied on our world-class services to the world’s middle-class. Over the past decade, increasing number of middle class appeared in China, this large group of consumers is careful at choosing which products to purchase. Out of the available products, they have picked NZ’s protein, as well as NZ as a tourist destination.

In my opinion, the quality of Chinese investment in NZ and the NZ investment in China highlights the value and importance of the relationship between the two countries, and there is confidence in each other’s market to further expand its service areas.  Chinese banks coming to NZ enhances this positive trend.

To read the full article in Chinese, see the link below:

http://www.chnet.co.nz/Html/2014-8-26/News_87492.html

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