ANZ plans China growth

ANZ's regional ambitions are seemingly endless. In 2007, it bought just shy of 25% of Malaysia's AMMB Holdings (AMBank) - which is a market leader in Islamic bond issues out of its Labuan subsidiary.

In October last year, as the bank announced its least good (it would not be fair to call it "worst" given that it did make a profit, unlike so many other banks) results for a decade and that it was making provision for AUD100 to cover anticipated redundancies as the recession took further hold, it received a licence to set up a local bank in Vietnam.

In January this year, ANZ increased its stake in PT Banin Bank, Indonesia, to just over 38% - and this week it launched its new "global brand" in Indonesia and announced an expansion of the branch network in Jakarta. ANZ owns an 85% share in PT ANZ Panin Bank, a joint venture with PT Banin Bank.

And now, the bank is planning what seems like modest ambitions in China: to open 20 branches by the end of 2012. The plan, according to ANZ'a CEO Mike Smith is to grow organically. That includes the creation of a rural bank in Liangping "in support of the Chinese Government's rural reform strategy."

That last comment hints at the horse-trading that is a feature of dealing with governments all over the world - expertise in one area for commercial access in another.

ANZ has a long history in China - its first entry being in 1947. Since then, it has opened branches in Beijing and Shanghai and a rep office in Guangzhou. But it also has holdings in domestic banks Shanghai Rural Commercial Bank (19.9%) and Bank of Tanjin (20%)