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Foreign Banks to Run RMB Business in Beijing

According to the commitments made by the Chinese government to the WTO, foreign banks will be permitted to participate in RMB-denominated business in some Chinese cities, including Beijing, beginning December 11 this year. The change is widely viewed as the advent of a new era for China's financial industry.

Beijing's gross domestic product (GDP) was 361.1 billion yuan (US$43.7 billion) in 2003, a rise of 10.7 percent year-on-year. The added value of the city's financial sector reached 51.4 billion yuan (US$6.2 billion), accounting for 14.2 percent of the city's GDP for the year.

The figures indicate the vital role the financial sector plays in the city's economic growth as well as its potential for development, said Beijing Mayor Wang Qishan at the Beijing International Financial Forum on Wednesday. He added that the Beijing government would continue to improve the local development environment by stepping up infrastructure construction and upgrading local transportation and production facilities.

The one-day forum was sponsored jointly by the , China Banking Regulatory Commission, China Securities Regulatory Commission, China Insurance Regulatory Commission and Beijing Municipal People's Government.

It was attended by 28 financial magnates from China and abroad, and more than 400 top personnel from the China operations of foreign financial institutions.

(Xinhua News Agency May 20, 2004)

Foreign Banks Given Green Light
Regulator to Strengthen Supervision on Foreign Banks
Overseas Banks to Follow New Rules
Renminbi Business for Overseas Banks Allowed in Shanghai, Shenzhen
Foreign Banks Allowed to Manage RMB Business in West China
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