Goldman Sachs led US banks plowing billions of fresh cash into China last year, undeterred by political turmoil as the world's second-largest economy further opens its US$50 trillion (HK$390 trillion) financial market.
The bank's "cross currency outstandings" rose 33 percent to US$17.5 billion last year in China, covering a broad array of cash and financing to companies and government entities, according to an annual filing.
Together with Citigroup, JPMorgan, Bank of America and Morgan Stanley, the five big US banks had US$77.8 billion in exposure, up 10 percent from 2019.
China's financial markets are a potent lure for the world's biggest banks, with billions of profits on the line in investment banking and wealth management.
But they also face an opaque regulatory environment and a tense political climate that has deteriorated over the past years and is unlikely to see major improvements under the Joe Biden administration.
The banks are "drawn to strong economic performance like moths to a flame," said Brock Silvers, chief investment officer at Kaiyuan Capital.
Citi and JPMorgan have largest exposures to China among Wall Street peers and Europeans banks are also keen to boost investments. London-headquartered HSBC (0005) is increasingly pinning its future to Asia, with plans to invest at least US$6 billion across the region, including China.
