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ChinaÆs bonsai banks say itÆs all about size

Municipal lender Bank of Shanghai''s attempt to expand into a neighbouring city challenges the bank sectorÆs status quo.
China's city commercial banks, nicknamed 'bonsai banks' for the government prohibition on setting up branches outside their native cities, are kicking up a fuss. They want to grow. Bank of Shanghai is one of the most high-profile city commercial banks since HSBC, International Finance Corporation and Commercial Bank of Shanghai – confusingly based in Hong Kong – each acquired stakes over the past two years. Its profile has risen even higher since it was reported that it had tried to…
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