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International companies have made significant inroads in the battle for the cash of China's urban elite but domestic firms still dominate, a survey report showed yesterday.

Two out of three Chinese city-dwellers aged 55 and above prefer to buy Chinese brands, said the study by the Far Eastern Economic Review.

Younger people also espouse patriotism but are more divided, with only 54 per cent of under-35s claiming they would opt for domestic items, according to the report based on a survey carried out in August and September of 1,091 top-bracket individuals in Beijing, Shanghai and Guangzhou.

'Shoppers of all ages admit to a strong preference for items with an international image,' the report said.

'Whether a jacket is made in Shanghai or Siena, it needs to look Italian.

'This is particularly important for younger people, 74 per cent of whom rated international appearance as a key factor in their decision-making process when shopping.'

The majority of those who responded to the survey had bank accounts or had performed transactions at a variety of banks.

The top five banks in China are all domestic, with the Industrial and Commercial Bank of China doing business for almost two-thirds of respondents, the report said.

The big American computer firms lag behind Chinese rivals with local brands Legend and Leveno the market leaders for office computers. The Chinese machines were used by 38 per cent of respondents.

'Still, American firms do get a look in. Intel, Hewlett-Packard and Dell were widely known and used, with about 12 per cent of respondents employing items made by those firms in their offices,' the report said.

Hong Kong is the most popular destination for both business and pleasure, cornering 36 per cent of the holiday market. Thailand is the second most popular holiday spot, attracting 28 per cent.

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