Bank of East Asia predicts China lending slowdown

SHANGHAI, Feb 19 (Reuters) - Bank of East Asia (0023.HK: Quote, Profile, Research, Stock Buzz), Hong Kong's fifth-largest lender by assets, expects growth of its lending in the mainland Chinese market to slow sharply this year, a senior executive of the bank said on Tuesday.

Growth is likely to slow to about 30 percent in 2008 from 70 percent in 2007 because of the government's drive to restrict new lending in order to cool the economy, said Lam Chi Man, executive vice president of Bank of East Asia (China), the bank's wholly owned China unit.

However, Lam also told Reuters that Bank of East Asia would continue to expand its China presence rapidly. He said it aimed to open about 25 new offices, including sub-branches, in the country this year and add around 1,000 new staff, compared to its current mainland China staff of about 2,700. (Reporting by George Chen; Editing by Andrew Torchia)