World's financial institutions must weigh risk of expanding in China

Fickle regulations and property bubble among many dangers

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Many financial institutions from developed countries see promise in asset management and investment banking in China. © Reuters

Financial institutions from across the globe are competing to expand in mainland China, eager to tap a massive economy that they regard as essential to their growth. Their zeal contrasts sharply with manufacturing and IT companies, which have begun rethinking their businesses in the world's No. 2 economy amid concerns about information security and other issues.

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