Banks refuse smaller companies

Today one of my colleagues went out to open a bank account for Chinabiz Speakers, something we thought would be a simple routine operation. We do expect to get some money in now and then and since our office is surrounded by branches of almost all banks, that seemed easy to do.
No so, he hold me just now: most banks refused him because the registered capital was too low in their eyes.
He then turned to the Bank of Shanghai, who was actually advertising themselves as the bank for the smaller and middle-sized companies. Not surprisingly, since they have their roots in the rural collectives of Shanghai's past. But my colleague was again refused, he then decided to argue. The employee talked to his boss and they reluctantly accepted the application.
Being a smaller company in China mean you just do not get the service you need.