Hong Kong banks eye China
(China – Hong Kong) The landmark free trade agreement struck between Hong Kong and China last week could open the way for a dozen or so small and medium sized Hong Kong banks to enter the mainland market.
Hong Kong commerce secretary Henry Tang said reducing the asset threshold from US$20 billion to US$6 billion would allow banks to move in against the larger Chinese banks and vie for a piece of China’s US$1 trillion in personal savings.
The free trade deal, which is tipped to boost the former British territory’s slowing economy by opening up 17 service sector such as banking and insurance to Hong Kong businesses, takes effect from 2004.
The deal is part of a general relaxation of restrictions on international businesses competing in China, however, foreign banks will not have the same tights as their Chinese counterparts until the end of 2006.
In further Chinese news, The People’s Bank of China has introduced new regulations aimed at clamping down on the problem of counterfeiting local and foreign currency.
The regulations are part of a national publicity week designed to raise awareness of counterfeiting by educating staff in China’s financial institutions on how to recognise counterfeit banknotes.
The regulations also clarify the rights and obligations of currency holders, requiring staff to avoid mistaken verification and seizure.
The free trade deal, which is tipped to boost the former British territory’s slowing economy by opening up 17 service sector such as banking and insurance to Hong Kong businesses, takes effect from 2004.
The deal is part of a general relaxation of restrictions on international businesses competing in China, however, foreign banks will not have the same tights as their Chinese counterparts until the end of 2006.
In further Chinese news, The People’s Bank of China has introduced new regulations aimed at clamping down on the problem of counterfeiting local and foreign currency.
The regulations are part of a national publicity week designed to raise awareness of counterfeiting by educating staff in China’s financial institutions on how to recognise counterfeit banknotes.
The regulations also clarify the rights and obligations of currency holders, requiring staff to avoid mistaken verification and seizure.
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