China-Based Banks Largely Escape Quake
May 13, 2008
Monday's devastating earthquake in China did not seriously affect investment banking and other financial services operations in the country.
Most financial institutions in China have representative offices in Beijing, Shanghai and Hong Kong. All three cities are far from the epicenter, which was in the southwestern part of Sichuan province. Sichuan is located in south-central China.
The earthquake, which has killed more than 13,000 people, could be felt in other parts of the country such as Beijing, and in neighboring countries like Thailand and Vietnam.
Spokeswomen for Credit Suisse and BMO Capital Markets said they were not aware of any disruptions to the firms' Chinese operations.
A source close to Goldman Sachs said none of that bank's offices or employees in China were affected.
Josh Bobley, principal and co-founder of U.S.-China business consultancy Dynasty Resources, said Dynasty's main office is in Shanghai, 900 miles away from the epicenter. Dynasty did not suffer property damage or employee injuries, though Bobley and his colleagues were unable to communicate with their Shanghai counterparts for several hours after the earthquake.
Bobley said he spoke to someone in Beijing who could feel the earthquake but was not injured. He called two friends in Sichuan, but has not heard from them.
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