We conduct a bank efficiency comparison among threeChinese regions: Mainland China (CN), Hong Kong (HK),and Macao (MO). Specifically, we investigate the reasonsfor efficiency differences observed in the three regionsfrom within‐region and cross‐region perspectives. Weshow that HK and MO maintain stable bank performanceover time that lies within the developed‐economy range ofefficiency levels. CN used to be well below this range buthas been catching up so quickly that efficiency conver-gence in the three regions seems to be underway. We findthat the determinants of bank efficiencies in the threeChinese jurisdictions are similar in some aspects butdifferent in others. Most significant are their similarities inthe effects of interest rate differentials, forex reserveaccumulations, bank capital positions, interbank financingopportunities, and liquidity  mismatch  problems.  Alsoimportant are their differences in the effects of bank size,revenue diversification, government ownership, property,and stock market development.