(PBOC) pointed out that after joining the World Trade Organization
(WTO), China will earnestly keep its promise of opening its banking
sector to the outside world, further expedite and deepen financial
reform, strive to do various fields of work well, promote what is
beneficial and abolish what is harmful, constantly enhance the
international competitiveness of the domestic banking sector and
boost the steady and healthy development of the banking sector in
the process of reform and opening up.
In
accordance with related WTO accords, China will gradually lift
restrictions on foreign-funded banks. When it is formally joining
the WTO, China will cancel regional and client limitations to
foreign-funded banks in handling foreign exchange business, then
foreign banks can open foreign currency business to Chinese-funded
enterprises and Chinese citizens.
China will gradually lift regional restriction on foreign-funded
banks in handling Renminbi business:
When joining the WTO, China will open Shenzhen, Shanghai, Dalian
and Tianjin;
In
one year after WTO entry, it will open Guangzhou, Zhuhai, Qingdao,
Nanjing and Wuhan;
In
two years after WTO entry, it will open Jinan, Fuzhou, Chengdu and
Chongqing;
In
three years after WTO entry, it will open Kunming, Beijing and
Xiamen;
In
four years after WTO entry, it will open Shantou, Ningbo, Shenyang
and Xi'an;
In
five years after WTO entry, it will lift all regional
restrictions.
China will gradually abolish client restrictions on foreign banks
in relation to Renminbi business:
In
two years after its WTO accession, China will allow foreign banks
to handle Renminbi service for Chinese enterprises;
In
five years after its WTO entry, China will permit foreign banks to
provide services for all Chinese clients, it will also permit them
to set up business outlets in the same region, requirements of
examination and approval are same with Chinese-funded banks.
In
five years after its WTO entry, China will abolish all existing
non-cautious measures regarding restrictions imposed on foreign
banks in their ownership, forms of operation and establishment,
including their branch offices and the issuance of licenses.
Foreign-funded non-banking institutions are allowed to be
established to provide automobile consumption credit business,
which enjoy equal treatment with the same type of Chinese-funded
financial institutions; foreign-funded banks can, within five fives
after WTO entry, provide automobile credit service for individual
Chinese residents. Foreign-funded financial leasing companies are
allowed to provide financial leasing service within the same period
of time as that of Chinese firms.
According to statistics from the People's Bank, by the end of
September this year, there had been nearly 190 business agencies of
foreign-funded banks in China, including 158 branches, set up under
which were six sub-branches, most of them are concentrated in
places such as Shanghai, Shenzhen, Beijing, Guangzhou and Tianjin.
Foreign-funded banks have total assets worth US$44 billion,
including loans worth US$18.6 billion and deposits worth US$6.5
billion.
( December 6, 2001)