Bank of America's China Strategy
Bank of America (NYSE:BAC) has been working hard to go beyond its limited China presence via the China Construction Bank to being granted licenses of its own which it can have much better branding control over.
What Bank of America wants to do, and the reason CEO Brian Moynihan is visiting China, is to be allowed to expand its current products in the Chinese market beyond retail banking to commercial and corporate banking.
Competitors in China like JPMorgan (NYSE:JPM) are working on joint ventures with Chinese companies where they can underwrite stock offerings in the country, a major advantage over Bank of America. Other competitors already have these types of deals in place.
The strategy to implement the plan is to be incorporate locally in the country, which would allow the company to provide many more products there.
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