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Chinese Bankers Survey 2016

Chinese Bankers Survey 2016

www.pwchk.com Chinese Bankers Survey 2016

Executive summary

February 2017 Preface

We are pleased to present the Chinese Bankers Most bankers in the survey believe that the top Survey 2016 report, prepared jointly by the priority in addressing risk is "to improve cash Banking Association (CBA) and PwC. Now in its collection, accelerate write-offs and disposal of eighth year, the report keeps track of developments collaterals". While increasing NPL disposal efforts in China’s banking sector from the perspective of a through conventional means such as write-offs, group of bankers. collections and transfers, Chinese banks are also actively exploring a diversified range of alternatives, This year’s survey dug deep into the core issues including NPL securitisation, cooperating with the while maintaining a broad scope. Dr. BA Shusong, big four asset management companies (AMCs), and the project leader, together with the project team, transfer of income beneficial rights. There is a interviewed 15 senior bankers to get their insights section in this report summarising bankers’ views into the sector. Seven of the 15 bankers are at C- on the major challenges regarding disposal of NPLs. suite level (director, vice president or above). These interviews complemented the online survey With China’s economic structural reform at a critical covering 31 provinces in mainland China (excluding juncture, Chinese banks are expected to play a more Hong Kong, Macau and Taiwan). With a total of active role in fulfilling social responsibilities by 1,794 valid responses collected, the survey sampling serving the real economy. With regard to economic process has taken into account participants’ restructuring, most bankers believe that “upgrading geographical regions, grades, types of financial and transforming manufacturing sector, and institution, and if the institution is listed on stock exploration of new markets" brings many exchange(s) or privately held. These factors opportunities to their sector. It is also widely agreed contributed to a wide and full representation of by the bankers that supporting the real economy China’s banking sector. and bringing down borrowing costs while removing financing barriers are paramount, as the real The total assets of Chinese banking institutions economy is the backbone of the country’s wealth amounted to over RMB 200 trillion for the first time creation. In response to “supply-side structural in 2016. Nevertheless, due to the pressure of rising reform”, over 80% of bankers in the survey are non-performing loan (NPL) ratios, narrowing net committed to adjusting loan portfolios in order to interest margin (NIM), and declining return on support emerging industries. Banks, they argue, investment portfolios, Chinese banks’ profit growth should launch a variety of products and services to continued to slow, with medium- and large-sized support the central government’s initiatives, such as banks experiencing a "new normal" of single-digit the scheme to “link equity investment with lending”, growth. Banks’ existing business models are being "debt-for-equity swaps”, and green finance. These challenged dramatically, as the Internet and mobile are all regarded as part of Chinese banks’ social devices are widely used by consumers. The banking responsibilities to serve the real economy. landscape in China is poised to be re-shaped by new business models as a result of the adoption of new This year’s survey gives more focus on “Internet financial technologies (FinTech). Finance”, an emerging business model in China that resembles what is known as FinTech in the West. In light of a more challenging and complicated Over the past several years, many new technologies, external environment in 2016, bankers’ expectations such as data analytics, cloud computing, artificial on revenues and after-tax profits growth over the intelligence and blockchain have been applied in a next three years are lower than previous years, with wide range of sub-sectors in financial services, credit asset quality being the area of most concern. including payment and clearing, lending, wealth

Chinese Bankers Survey 2016 2 management, retail banking and insurance. While For further information or enquiry, please contact such technological advances have taken a toll on the CBA, PwC or the Project Leader. traditional banking businesses, bankers see opportunities. They are capitalising on these by PAN Guangwei integrating technologies with innovative ideas, Executive Vice President, especially by integrating the Internet with their China Banking Association existing products and services. This is clearly demonstrated by the fact that bankers continue to David WU attach great importance to Internet Finance in 2016, Senior Partner, PwC China with half of them committing to put Internet Finance as a high priority and to increase Dr. BA Shusong investment. In addition to the promising Project Leader opportunities ahead, over half of the bankers in the survey regard information technology (IT) as the top risk when developing new systems for internet December 2016, Beijing finance.

We would like to take this opportunity to thank all those who participated in the survey. They spared time out of their busy schedules to complete questionnaires and talk to us, sharing their views, observations and valuable experience. We hope this survey report helps readers better understand the developments and prospects of China’s banking sector, as it is presented from the perspective of those practitioners. We look forward to receiving your valuable comments and suggestions, which will drive us to improve in the future.

Chinese Bankers Survey 2016 3 Participating Banks

A total of 166 Chinese banking institutions participated in the online survey and interviews. A full list of participating banks is shown below:

1. Policy banks (3) 4. Foreign (joint venture) banks (9)

China Development Bank Bank of East Asia (China)

The Export-Import Standard Chartered Bank (China)

Agricultural Development Bank of China Citibank (China)

2. Large commercial banks (6) Hang Seng Bank (China)

Bank of China Fubon Bank

Agricultural Bank of China Australia and New Zealand Banking Group (China)

Industrial and Commercial Bank of China OCBC Wing Hang Bank (China)

China Construction Bank Bank of Tokyo-Mitsubishi UFJ (China)

Bank of Communications Allied Commercial Bank

Postal Savings Bank of China 5. City commercial banks (63)

3. Joint-stock commercial banks (12)

China CITIC Bank Bank of

China Everbright Bank Bank of Chengde

Huaxia Bank Bank of Langfang

China Minsheng Bank Baoshang Bank

China Merchants Bank Bank of

Industrial Bank Bank of

China Guangfa Bank Bank of

Ping An Bank Bank of Shangrao

Shanghai Pudong Development Bank

Hengfeng Bank Bank of

China Zheshang Bank Bank

China Bohai Bank Bank of

Chinese Bankers Survey 2016 4 Dezhou Bank Bank of Ningxia

Dongying Bank City Commercial Bank

Bank of Bank of Pingdingshan

Bank of Ganzhou Qilu Bank

Dazhou City Commercial Bank Qishang Bank

Guangxi Beibu Gulf Bank Bank of

Bank of Bank of Rizhao

Bank of International Bank

Guilin Bank Shanghai Huarui Bank

Harbin Bank Weihai City Commercial Bank

Hami City Commercial Bank Bank of Weifang

Hankou Bank Bank of Urumqi

Bank of Bank of Xi’an

Huishang Bank Bank

Bank of Jilin Yangquan City Commercial Bank

Bank of Jining Bank of

Jiangxi Bank Zaozhuang Bank

Bank of CTS.JZ Chang’an Bank

Jinshang Bank Changzhi Bank

Bank of Zhejiang Tailong Commercial Bank

Linshang Bank Bank of

Longjiang Bank Zhongyuan Bank

Luzhou City Commercial Bank 6. Rural financial institutions (73)

Bank of Shanghai Rural Commercial Bank

Mianyang City Commercial Bank Rural Commercial Bank

Nanchong City Commercial Bank Rural Commercial Bank

Bank of Inner Mongolia Chengdu Rural Commercial Bank

Bank of Dalian Rural Commercial Bank

Chinese Bankers Survey 2016 5 Xiamen Rural Commercial Bank Rural Commercial Bank

Anxiang County Credit Cooperative Hunan Rucheng Rural Commercial Bank

Bazhong CDB Village Bank Hunan Rural Commercial Bank

Baotou City Donghe Jingu Country Bank Hunan Provincial Rural Commercial Bank

Beijing Fangshan SRCB Rural Bank Hunan Shuangfeng Rural Commercial Bank

Cenxi Beibu Gulf County Bank Hunan Taoyuan Rural Commercial Bank

Changde Rural Commercial Bank Hunan Tianyi Rural Commercial Bank

Xiangtan Rural Commercial Bank Hunan Rural Commercial Bank

Durbote Run Sheng Rural Bank Hunan Xinhuang Rural Commercial Bank

Gansu Province Rural Credit Union Hunan Yizhang Rural Commercial Bank

Gongyi SPDB Rural Bank Hunan Rural Commercial Bank

Guang’an Evergrowing Rural Bank Jiangsu Province Changshu City Rural Bank

Guanghan Zhujiang Rural Bank Juancheng Baoshang Country Bank

Guangxi Rural Credit Union & Cooperative Bank The Federation of Rural Credit Cooperatives

Guangyuan City Baoshang Guimin Country Bank Kunlun Country Bank

Guizhou Rural Credit Union Dashiqiao Longfeng County Bank

Hanshou Rural Commercial Bank Inner Mongolia Rural Credit Cooperative

Honhhot Jinqiaohetao County Bank Ningxia Yellow River Rural Commercial Bank

Hubei Rural Credit Cooperatives Pingyi Hanyuan County Bank

Hunan Guidong Rural Commercial Bank The Federation of Qujing Rural Credit Cooperatives

Hunan Hengzhou Rural Commercial Bank Xiamen Xiang’an Minsheng County Bank

Hunan Rural Commercial Bank Shandong Pingyi Hanyuan County Bank

Hunan Jinshi Rural Commercial Bank Shaanxi Qishan Chang’an County Bank

Hunan Lixian Rural Commercial Bank Rural Commercial Bank

Hunan Rural Commercial Bank Shenyang Yuhong Yongan Country Bank

Hunan Linli Rural Commercial Bank Beichuan Fumin County Bank

Hunan Linwu Rural Commercial Bank Dazhu CQRC County Bank

Hunan Rural Commercial Bank Sichuan Rural Credit Union

Chinese Bankers Survey 2016 6 Tianjin Jinnan Village Bank

Jixian Village

Wuming Lijiang County Bank

Xi Chang Jin Xin Rural Bank

Ronghui Country Bank of Xiangyuan

Xindu Guicheng Rural Bank

Xinmi Zhengyin Country Bank

Yongxing County Rural Credit Cooperative

Yunnan Rural Credit Cooperatives

Zhejiang Rural Credit Union

Zhejiang Xiaoshan Hushang Rural Bank

Zhongwei Xiangshan Rural Bank

Chinese Bankers Survey 2016 7 Executive Summary

The world economy has been turbulent since the would be the main constraint and capital-intensive beginning of 2016, with weak recovery momentum businesses would come under greater strain. On the in developed economies and slower growth in RMB’s inclusion into the Special Drawing Rights emerging economies. This situation is further (SDR) basket, 75.8% of bankers believe it will clouded by the result of “Brexit”. All of above accelerate the internationalisation of RMB. uncertainties contributed to a complicated external environment for China's economy, which is already Responding to “supply-side structural facing growth and structural challenges. In the first reform” three quarters of 2016, the country demonstrated stable economic growth with a few positive trends. As China’s economy enters a “new normal” stage, China’s economy has made progress in structural supply-side structural reform remains high on reforms and in turn improved market confidence. policy makers’ agenda. Around 80% of bankers That said, downward pressure remains and the agree that supply-side structural reform targeted at foundations of growth are not solid enough. upgrading and transforming the manufacturing Structural reforms still have a long way to go. With sector, and exploration of new markets offer the economic rebalancing and interest rate greatest opportunity for Chinese banks. liberalisation gathering pace, Chinese banks are Nevertheless, the central government’s policies on facing a series of pressures, such as slowing profit cutting excess capacity, de-stocking, de-leveraging, growth, narrowing net interest margin (NIM), and lowering corporate sector’s borrowing costs, increasing non-performing loan (NPLs) balances improving infrastructure and removing institutional and ratios. New growth engines are in urgent need. barriers also bring many challenges, such as “lower In its eighth year, the Chinese Bankers Survey profit margins” (64.3%), “slower growth” (52.8%), report offers a complete picture of the sector, from “deteriorating credit asset quality” (52.8%), and the perspective of practitioners. “more difficult to dispose NPLs” (46.1%). When it comes to the top priority in response to supply-side Revising growth forecasts structural reform, 71.6% of bankers believe that they should refrain from lending to companies in China reported stable Gross Domestic Product overcapacity industries, to so-called “zombie (GDP) growth of 6.7% in the first three quarters of companies”, and to companies in other inefficient 2016. Yet most bankers revised their growth sectors. While as many as 85.4% of bankers think forecasts downwards compared to one year ago, banks should adjust loan portfolios proactively, with 78.7% of bankers believing the country’s GDP another 79.7% of bankers are in favour of more growth would stay at a range between 6.0% to 7.0% credit support to emerging industries. over the next three years (as opposed to 85.1% of bankers expecting growth between 6.5% and 7.5% in Living in a “mega-asset management” and 2015). The major challenges for China's economy as “broader investment banking” era highlighted by bankers are “growth slowdown” (60.7%) and “structural imbalance” (58.6%). Over Profitable assets are more and more difficult to half (54.5%) of bankers argue that the biggest locate in China. This trend has continued for a while setback arising from economic slowdown for the and is referred to as “asset scarcity" by market banking sector is “much greater risk exposure”. participants. The case was even worse in 2016. A Turning to the effect of Macro-prudential large portion of bankers in the survey attribute this Assessment (MPA) introduced by the People’s Bank to “macro-economic slowdown” (78.3%) and “high of China (PBoC), 68.6% of bankers think that capital asset risks” (76.9%), whereas another group of

Chinese Bankers Survey 2016 8 bankers argue that it is due to a highly (52.4%) when engaging in such activities. More homogeneous competition and similar risk generally speaking, “companies in high potential preferences. To address “asset scarcity”, markets” are preferred (77.2%). When it comes to “strengthening asset management” (61.8%) and the business model, bankers prefer “internal “developing investment banking” (54.3%) are collaboration between credit division and perceived to be the solutions. On strengthening investment-focused subsidiaries” (33%), and “to asset management, “providing better wealth grant loans to companies already funded by venture management products” (60.1%) and “offering capital funds (VCs) and private equity funds (PEs)” investment advisory services” (50.1%) are the top (32.7%). Bankers also tend to “set up separate two suggestions. In terms of asset class, bankers investment subsidiaries” (36.5%) in conducting prefer to put wealth management funds into money these venture lending businesses. Turning to the market and bond market products, such as risks, bankers regard “high risk and long payback “domestic corporate bonds, short-term bills, period” (58.1%) and “different risk preferences medium-term notes and private placement bonds” between commercial banks and investment banks” (75.7%), “money market instruments such as (57.4%) as major barriers to committing more domestic interbank loans, reverse repos and resources. interbank deposits” (60.6%), “others assets such as non-standardised debt securities” (52.2%). Dealing with “debt-for-equity swaps”

On developing investment banking, bankers suggest "Debt-for-equity swaps" are another important “exploring industry-focused funds, public-private- initiative launched by the central government in partnership (PPP) funds and other innovative equity 2016 in an attempt to reduce credit risk and the financing products” (66.8%), “strengthening typical leverage ratio of the corporate sector. This is also investment banking business such as bond part of the “supply-side structural reform” agenda. underwriting, investment and financing advisory, In the survey 64.9% of bankers believe that such and syndicated loans” (64.4%). Challenges arising swaps help to ease the debt burden for businesses from investment banking business include: and may lower overall credit risk and even “undifferentiated business models and products” systematic risk. However, this is just one side of the (66.9%), “inadequate risk management mechanism argument, as 47.2% of bankers stress that "debt-for- and capacity” (60.3%), and “inexperienced equity swaps” would only defer risks rather than personnel” (59.0%). mitigate them. Another 47.1% of bankers are concerned that the key element, which is also a Linking equity investment with lending major challenge, for the initiative to succeed is a governing structure driven by market forces. Other The central government launched a pilot barriers for "debt-for-equity swaps” include legal “investment and loan linkage” scheme in order to impediments, capital constraints, lack of exit-routes support start-ups and small businesses in 2016. The and inefficiencies. Only 3.9% of bankers believe it is concept of the scheme is similar to what is known as appropriate for banks to directly convert the loans “venture lending” or “venture debt” in the West, to equity. Instead, they argue, banks should engage which is a type of debt financing provided to with asset management companies (AMCs), set up venture-backed companies. In the survey 71.1% of separate subsidiaries, or appoint third-parties to bankers agree that this scheme has opened up new deal with such matters in a more professional investment channels and will boost investment manner. volume. Bankers favour “technology start-ups”

Chinese Bankers Survey 2016 9 Managing risks and improving internal channel”, followed by “restructuring” (50.8%), controls “reclaiming in accordance with laws and regulations” (36.8%), “debt-for-equity swaps” In 2016, the credit asset quality of Chinese banks (36.4%), “engaging with third-parties” (31.6%), and continue to face strong headwinds, with NPL “transfer of beneficial income rights” (30.7%). balances and ratios on the rise. With regard to risks, Bankers’ concerns on NPL disposal are “prolonged bankers in the survey were concerned most about and exhaustive lawsuits" (79.6%) and "difficult and “credit risk due to the economic slowdown” (81.3%) ineffective to dispose collaterals" (67.4%). and “market risk caused by the fluctuations of interest rates, exchange rates and stock indexes” Addressing human resource challenges (53.8%). Most bankers regard “improving cash collection related to NPL” and “accelerating write- Chinese banks have experienced successive brain offs, disposal of collaterals” as top priorities in risk drains in recent years. As a result, Human Resource management. For mortgages with rural business (HR) departments need to look at better ways to land or rural residential properties as collateral, attract and retain talents. Bankers in the survey 59.2% of bankers feel that "setting up a collateral believe the most effective ways are “good promotion disposal mechanism" is the most effective way to prospects” (49.1%), “high development potential” control risks. On risks associated with overseas (45.5%) and “job stability” (40.7%); while reasons operations, 51.0% of bankers think that risk for resignation include “few promotion prospects” identification is an important area of improvement. (50.4%), “stressful workload” (44.9%), and “poor remuneration package” (42.8%). As many as 85.3% Speaking of areas of improvement for internal of those who left the banking sector are still working controls, 55.4% of bankers find “well-defined roles in other types of financial institution. and responsibilities” very important. There were a few risk incidents (e.g. bill fraud) in 2016. Bankers Improving corporate governance attribute “the mentality of putting revenue above everything else and neglecting internal controls” Bankers are more positive about corporate (69.2%) as the main cause. Businesses related to governance in their sector than they were in 2015. bills (74.7%) and credit (70.9%) are the two most They gave highest marks for “meeting social inspected areas. responsibilities" (4.56), followed by "organisational structure" (4.44). On Employee Stock Ownership Disposing NPLs Plans (ESOPs), 87% of bankers feel positive, although there are still several obstacles such as Despite the fact that NPL balances and ratios “design of shareholding structure” (46.2%), “equity continue to deteriorate, 69.5% of bankers still valuation and accounting & tax treatments” (45.5%), believe that NPLs have not been fully exposed, with “regulatory constraints” (45.3%) and “complicated 61.4% of bankers expecting NPLs to peak in one or operational procedures” (44.4%). two years. Most bankers tend to dispose NPLs by conventional means, such as “reclaiming in Embracing green finance accordance with laws and regulations” (72.2%), “normal collection” (68.0%), “write-offs” (49.3%), Green development is regarded as one of the and “restructuring” (49.1%). Under the support of fundamental principles of China’s 13th Five-year regulators with new policies, 66.6% of bankers tend Plan and beyond. Green Finance, a broad concept to “use NPL securitisation as an alternative describing investing and financing activities, has

Chinese Bankers Survey 2016 10 therefore drawn much attention. Nearly 90% the West, is deemed as a top priority by bankers in (88.9%) of bankers believe that engaging with green 2016, with 47.2% of them committing to invest more finance would have a positive impact on their in this area. That said, with a growing number of business. Around half (50.6%) of bankers hold the risk incidents, bankers have been re-thinking its view that green finance should start with relevant development. In the survey, 56.4% of bankers products, and 82.4% of bankers are willing to grant believe that “information technology (IT) risk more loans to green economic activities provided arising from the development of new business the risks are manageable. That said, challenges systems" is the greatest challenge. remain for green finance, such as “lack of incentives” (19.4%); “inadequate laws and Bankers are increasingly aware of the importance of regulations to protect investors” (17.4%); IT infrastructure in 2016. Their top focus includes “undesirable policies” (17.1%); “shortage of “trading platform” (72.3%), “credit management practitioners, institutions, systems and capacity” system” (46.1%), “risk management system” (16.5%); and “inefficient market structure” (14.4%). (44.2%), and “payments and clearing system” Most bankers believe that “supportive policies” (43.4%). Applications of data analytics include (77.8%) and “risk-sharing mechanisms” (67.9%) are “precise management ” (64.7%) and “customer in urgent need for green finance to take off. engagement” (62.4%). Given Bitcoin’s popularity, the underlying technology – blockchain – catches Promoting financial inclusion bankers’ attention. However, most bankers are still unsure of its applications in daily business, as they In its Plan for Promoting Financial Inclusion believe there are still problems such as “premature (2016-2020), the central government outlines a application in commercial banking business” vision that all market participants shall have access (67.6%) and “regulatory uncertainties” (64.1%). to financial services. Yet 64.4% of bankers believe that financial inclusion is more about fulfilling social Evaluating regulatory efficiency responsibilities. On the implementation, 74.9% of bankers argue that relevant measures should be Bankers’ feedback on regulatory indicators remains carried out in a more targeted manner according to generally positive in 2016. Yet their ratings on the the institutions’ risk and return characteristics. framework of those indicators and the regulators’ “Supporting small-and medium-sized enterprises style dropped slightly. This is probably due to the (SMEs)” (56.3%) and “facilitating agriculture, rural fact that bankers had higher hopes that regulators areas and farmers’ well-being" (37.0%) are also high would fine tune their policies in a timely manner on the agenda. On improving financial inclusion, and be more innovative, concerning the economic bankers believe the focus should be put on downturn. Almost half of bankers call for reforms of “developing innovative financial products” (62.4%). the current regulatory regime, a framework known Top challenges as highlighted by the bankers are as “one (central) bank” (the PBoC) and “three “insufficient credit database” and “a universal credit commissions” (China Banking Regulatory system” (52.7%). Commission, China Securities Regulatory Commission, and China Insurance Regulatory Re-thinking Internet Finance and commission). Under the current regulatory information technology approach that focuses on individual institutions rather than the nature of business, over 40% of “Internet Finance”, an emerging business model in bankers believe that the emphasis should be placed China that resembles what is known as “FinTech” in on utility and macro-prudential areas. Around 60%

Chinese Bankers Survey 2016 11 of bankers in the survey call for the bar on provision with over 60% of bankers predicting their NPL coverage ratio to be lowered. In a time when ratios will rise above 1.0% in the next three years. overseas compliance is more and more challenging This highlights the need to improve risk for Chinese banks, about 60% of bankers believe management. Since the provision coverage ratios of that the cause is "conflicts between domestic and Chinese banks are much lower than they were in overseas law and regulations“ (58.9%). Their previous years, over half of bankers expect the ratios prescriptions to the problem are “improving risk to be lower than 150% by the end of 2016. Turning and internal controls” (54.1%), “building a to capital adequacy, around 70% of bankers compliance culture” (53.7%), “communicating with estimate their capital adequacy ratios (CAR) to be overseas regulatory bodies more closely” (45.8%), lower than 11.5% by the end of 2016, with another and “strengthening strategic planning of overseas 30% of them predicting the ratios to stand below operations” (43.5%). 10.5%.

Bankers as a community

The economic downturn undermines Chinese banks’ profitability and credit asset quality, thus affecting bankers’ well-being. In this year’s survey bankers regard “work-life balance” (3.77), “work-related stress” (3.78) and “remuneration” (3.79) as least satisfying. “Lack of effective incentives” (30.4%) is the biggest barrier in their career progression. Over the past year, more bankers have resigned from their posts. According to the survey, this is due to “bankers’ wishing to take on greater challenges in a more competitive market” (32.7%), and “the pressure of declining profitability in the banking sector” (30.7%).

Outlook

With a slowing economy and intensifying market competition, bankers’ expectations of revenues and after-tax profits over the next three years are much lower than before. Nearly 90% of them forecast growth to be less than 15%. Another 70% of bankers estimate growth under 10%. This downward forecasting trend has continued for a few years. Bankers believe that an “L-shaped” recovery over the short run is more possible (37.2%), which brings great risks to their sector. To address these risks banks should “improve credit asset quality” (64.1%) and “adjust customer profile” (54.1%). Bankers are more concerned about credit asset quality in 2016,

Chinese Bankers Survey 2016 12 PwC Contacts

Finance Services Matthew Phillips Jimmy Leung Florence Yip Hong Kong and mainland China Hong Kong and mainland China China Financial Services Leader Financial Services Leader Financial Services Tax Leader +852 2289 2303 +86 (21) 2323 3355 +852 2289 1833 [email protected] [email protected] [email protected]

Banking & Capital Markets Margarita Ho Peter PT Li Richard Zhu China Banking & Capital Markets Hong Kong Banking & Capital North China Financial Services Leader Leader Markets Leader +86 (10) 6533 2368 +852 2289 2982 +86 (10) 6533 2236 [email protected] [email protected] [email protected]

Linda Yip James Chang Chris Chan China Financial Services Consulting China Financial Services Partner Transactions and Deals Partner Leader +86 (10) 6533 2300 +86 (10) 6533 2755 +852 2289 2824 [email protected] [email protected] [email protected]

William Gee China Fintech Partner +86 (10) 6533 2269 [email protected]

Capital Markets and Accounting Advisory Services Addison Everett Capital Markets and Accounting Advisory Services Leader +86 (10) 6533 7319 [email protected]

Insurance Xing Zhou Lars Nielsen Shuyen Liu China Insurance Leader Hong Kong Insurance Leader China Actuarial Partner +86 (10) 6533 7986 +852 2289 2722 +86 (10) 6533 2592 [email protected] [email protected] [email protected]

Chris Hancorn Xiaorong Huang Rick Barto Hong Kong Actuarial Partner China Consulting Partner Hong Kong Advisory Partner +852 2289 1177 +86 (21) 2323 3799 +852 2289 2477 [email protected] [email protected] [email protected]

Asset and Wealth Management Jane Xue Marie-Anne Kong China Asset and Wealth Management Hong Kong Asset and Wealth Leader Management Leader +86 (21) 2323 3277 +852 2289 2707 [email protected] [email protected]

Chinese Bankers Survey 2016 13 www.pwchk.com This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

© 2017 PricewaterhouseCoopers Limited. All rights reserved. PwC refers to the PricewaterhouseCoopers Limited, and may sometimes refer to the PwC networkChinese. Each Bankersmember Surveyfirm is a separate2016 legal entity. Please see www.pwc.com/structure for further details.

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