Rising labor costs and softening demand from Japanese manufacturers are driving Japan's regional banks to shift from China to Southeast Asia and India, creating hurdles for suppliers tied to the Chinese market, Nikkei Asia reported Wednesday.
According to Nikkei's analysis of 61 regional lenders, China's share of overseas offices fell from 50 in April 2021 to just 40 by the end of March, despite still representing nearly half of all foreign locations.
Hokkaido Bank shuttered its Shenyang outpost in May 2025 after nearly two decades, relocating operations back to Japan, while Bank of Kyoto closed its Dalian office last year and merged functions into its Shanghai branch, the news agency said.
Citing mounting maintenance burdens and declining customer demand, the Bank of Kyoto noted that downsizing became the logical response to falling client needs, the publication said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)