StanChart says China to be key in private banking

BEIJING, June 25 (Reuters) - Standard Chartered Plc (2888.HK: Quote, Profile, Research) (STAN.L: Quote, Profile, Research) said on Monday that China could be its largest market for private banking within 10 years, as the Asia-focused bank looks to leverage its growing list of corporate customers.

"I believe China will be the biggest contributor to private banking value for the group," China Chief Executive Katherine Tsang told reporters at the opening of the bank's first private bank office in China.

The bank will open an office shortly in Shanghai and plans to expand rapidly around the country in the coming years.

"We look to be in another eight to 10 towns and cities in China over the next three years," said Peter Flavel, the global head of Standard Chartered's private banking business.

The bank joins rivals such as Citigroup Inc. (C.N: Quote, Profile, Research) and France's BNP Paribas (BNPP.PA: Quote, Profile, Research) which have already set up private banking offices in China, where a 10-percent rate of annual economic growth in recent years has created more than 200,000 high net-wealth individuals.

Over the past month, Standard Chartered has launched its private banking business in 10 markets around the world, and will add another 10 markets in three to four years, said Flavel.

Standard Chartered's private banking targets high net-worth individuals with at least US$1 million in assets, most of whom will be recruited from the bank's list of corporate clients.

"Our clear focus is on business entrepreneurs and senior executives of multinational corporations, which is the natural sweet spot for Standard Chartered," said Flavel.

The bank will offer mutual funds, tax advisory services and inheritance planning as well as products approved for qualified domestic institutional investors (QDII), said executives.