BEIJING
- The China Banking Regulatory Commission (CBRC)
officially announced on Tuesday its approval for
HSBC, Citibank, Standard Chartered Bank and Bank
of East Asia to establish locally registered
branches to operate in China.
The four
overseas banks are allowed to start a full range
of foreign-exchange services and yuan businesses,
including yuan banking business for Chinese
citizens, with the establishment of their locally
registered subsidiary banks, though they will be
mainly engaged in foreign-exchange and yuan
business for companies
and
institutional clients.
Foreign banks were
previously prevented from offering
foreign-currency services to individuals, although
they could provide both local and foreign-currency
services to enterprises.
The four banks
will officially open business after their licenses
have been registered with the State Administration
for Industry and Commerce. HSBC and Citibank both
intend to start operations as soon as possible.
"Today's approval marks the beginning of
an unprecedented new chapter in Citibank's long
history in China," said Richard Stanley,
Citigroup's China chief executive officer.
HSBC will appoint its chairman, Zheng
Haiquan, as the chairman of the locally registered
corporation in China and the current China CEO of
HSBC, Richard Yorke, as the president and CEO of
the new subsidiary bank.
"We are glad to
get approval from the CBRC to establish a locally
registered bank in Shanghai," Zheng said.
China is a very important market for HSBC,
and local incorporation will have a positive
impact on the long-term development of the Chinese
financial market, according to Zhang.
Eight other banks are in the process of
preparing to establish a locally registered
subsidiary bank with corporate status, an official
with the CBRC said. They are JPMorgan Chase &
Co, ABN Amro Holding NV, Hang Seng Bank Ltd,
Mizuho Financial Group Inc's Mizuho Corporate
Bank, DBS Group Holdings unit DBS Bank, Bank of
Tokyo-Mitsubishi UFJ, Wing Hang Bank Ltd, and
Overseas-Chinese Banking Corp.
Ten of the
12 overseas banks plan to locate their
headquarters in Shanghai, China's financial
center, while JPMorgan picked Beijing, and Wing
Hang will be headquartered in the southern city of
Shenzhen.
Three more foreign banks -
Nanyang Commercial Bank Ltd, Citic Ka Wah Bank
Ltd, and United Overseas Bank Ltd - have filed
applications with the CBRC to establish locally
registered corporations and their applications are
under consideration.
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