Muslim Customers’ Acceptance Towards Islamic Banking: a Field Study in China, Ning Xia Province

Muslim Customers’ Acceptance Towards Islamic Banking:

A Field Study in China, Ning Xia Province

1.0 Introduction

Islamic finance first appeared in the Arab region in the 1970s. Among Worldwide, some countries in the banking system has been completely Islamized, such as Iran, Sudan and other countries; Some countries are Islamic banks and commercial banks coexist, such as Indonesia, Malaysia, the United Arab Emirates and Pakistan; Some countries Islamic banks and commercial banks clearly distinguished; Some countries allow commercial banks to set up Islamic banking window, the current Chinese belong to this category. Hong Kong is China first proposed the idea to build a regional Islamic financial platform, the Hong Kong government proposed to develop Islamic finance in 2007. August 2007, Hong Kong Monetary Authority approved Malaysia Hong Leong Bank (Hong Kong) Limited Hong Kong market launch of the first Islamic banking window. November 2007, Hong Leong Bank (Hong Kong) Limited has issued a first Islamic fund for retail investors. That same month, Hang Seng Investment Management Limited (Hang Seng Bank) to launch a Islamic funds, the first month to raise $ 65 million. In early 2008, in Riyadh, Saudi Arabia, Hong Kong Chief Executive Donald Tsang said, "Hong Kong's financial services infrastructure, stable, flexible and complete legal system, can become a trading center for Islamic finance in East Asia." Visible desire to become Asia's Islamic finance in Hong Kong very strong willingness center.

Ningxia compared to Hong Kong, the first stop as the Islamic Development Bank in China is crucial. As China's Ningxia Hui Autonomous Region only, is one of the most concentrated areas of the Muslims live, with the development of Islamic finance in the human environment. In recent years, trade between Ningxia and Arab countries have become closer, which provides a solid foundation for economic and trade development of autonomous local Islamic finance. Ningxia,...