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HSBC, Bank of Shanghai Boost Cooperation
Global banking giant HSBC (Hong Kong and Shanghai Banking Corporation) and the Bank of Shanghai have reached a cooperative agreement aiming at expanding their business in Shanghai.

According to the deal, the two parties will boost their cooperation over developing financial services for both individuals and corporations and improving the credit card customer base in the east China city.

A team has been established to conduct a feasibility study on the proposed cooperation and work out a detailed cooperation mechanism.

According to Dicky Yip, president of the HSBC in China, and Fu Jianhua, president of the Bank of Shanghai, the two banking groups will create a sound cooperation pattern, flexible and beneficial to both parties.

As a local stock-holding bank, the Bank of Shanghai was the first Chinese bank to attract overseas investment since China's entry into the World Trade Organization (WTO).

In December 2001, HSBC acquired an eight percent stake in the Bank of Shanghai, and since then the two banks have seen encouraging progress in their technological cooperation.

Citibank also bought a stake in the Shanghai Pudong Development Bank recently, which together with the HSBC move, indicates noted foreign banks are taking further steps to cooperate with local banks in Shanghai.

(Xinhua News Agency March 20, 2003)

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