Foreign banks gain greater access to China market
(13 December 2006 – China) The China Banking Regulatory Commission has given its approval to international banks HSBC, Standard Chartered and Citigroup allowing them to provide certain yuan services to Chinese citizens.
HSBC will offer limited yuan services in nine cities across China whilst Standard Chartered will do the same at seven city branches on the mainland.
Citigroup has received a similar license from the Chinese regulator but has yet to elaborate on how the US bank will use it.
The move comes as part of China’s World Trade Organisation commitment to freeing up its financial markets to foreign investors and is a precursor to foreign banks being awarded licences to start operating as local banks.
Being awarded local bank status means there will be no limits on the amount of deposits the likes of HSBC, Standard Chartered and Citigroup can take. They can also begin issuing credit cards.
Citigroup has received a similar license from the Chinese regulator but has yet to elaborate on how the US bank will use it.
The move comes as part of China’s World Trade Organisation commitment to freeing up its financial markets to foreign investors and is a precursor to foreign banks being awarded licences to start operating as local banks.
Being awarded local bank status means there will be no limits on the amount of deposits the likes of HSBC, Standard Chartered and Citigroup can take. They can also begin issuing credit cards.
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