Chinese banks increase advertising spending

13 October 2006

Chinese banks have been increasing the amount of money they spend on advertising in order to secure domestic customers before foreign competitors enter the market.

In December this year, China is required to open up its domestic financial market in order to comply with World Trade Organization rules – with many major overseas banks expected to try their luck in the world's fastest growing economy.

Domestic lenders, apparently concerned by the expected sudden increase in competition, are reportedly spending up to a third more this year on promoting their image and services in order to ensure that levels of retail banking business remain high.

However, the Wall Street Journal reports that the style of advertising differs massively from the bank adverts most commonly seen in Europe and the US, with Chinese customers apparently more concerned with the exact financial gains that various investment products can generate.

Television and magazine advertising appears to contain many more words, combined with equations and data on the services provided.

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