Banking and Paying Bills

My friend Sam said it best when he described Shanghai as all hardware and no software. On the surface, it looks like a very modern city, but it lacks the infrastructure that you would expect from the image that they project. Shanghai (and China in general) is growing so fast that their infrastruture cannot keep up. But China is working on this and in a couple of years, I think Shanghai and other big cities will provide more conveniences.

The banking system is very antiquated. Checks do not exist here. Everything is handled by cash or by debit cards. But only Chinese banks may issue debit cards. I had originally wanted to bank at HSBC, which is a European bank, but it would require me to transact solely by cash. In addition, there is the hassle of finding a HSBC, which is not as prevalent as Chinese banks. So I bank at ICBC (Industrial and Commercial Bank of China). Online banking is very limited. I can check my balances online but that is all. I can do wire transfers from an ATM but it would require me to have the other party's private code, which I'm not sure why anyone would give it out.

When I transfer funds from my US account to my ICBC account, it is wired in USD and is recorded in USD. I have to go down to the bank and ask them to convert it to RMB for me. And I have to do this every time. They can't set me up to have it done automatically.

So when you go to a bank, you have to input on a machine what kind of transaction you want to effect -- personal banking, loan, business banking, etc. Then you get a number and a monitor will show you when your number is up and what teller you should visit. Each transaction that you want to effect requires a bank "chop". A "chop" is a company's stamp. So I was at the bank the other day to deposit USD and then convert the USD already in my account to RMB, it required 2 forms and 2 chops. And no one at the bank speaks English. I usually go with Sam or I engage in a spirited game of charades with the teller.

Since checks are not used here, you have to pay your bills by cash. You can pay your bills at the post office or a convenient store, both of which are open 7 days a week. Since there is a Lawson convenient store next to both of my offices, this isn't a problem for me, except for my phone bill. You can't pay it at the post office or convenient store . I have to visit a China Mobile office to pay it. I haven't been able to find one yet, though I'm told that they are everywhere.