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We conduct a bank efficiency comparison among three Chinese regions: Mainland China (CN), Hong Kong (HK), and Macao (MO). Specifically, we investigate the reasons for efficiency differences observed in the three regions from within‐region and cross‐region perspectives. We show that HK and MO maintain stable bank performance over time that lies within the developed‐economy range of efficiency levels. CN used to be well below this range but has been catching up so quickly that efficiency convergence in the three regions seems to be underway. We find that the determinants of bank efficiencies in the three Chinese jurisdictions are similar in some aspects but different in others. Most significant are their similarities in the effects of interest rate differentials, forex reserve accumulations, bank capital positions, interbank financing opportunities, and liquidity mismatch problems. Also important are their differences in the effects of bank size, revenue diversification, government ownership, property, and stock market development.