Fifty-eight banks based in the Hong Kong Special Administrative Region, have opened branches in China's inland areas, and 38 have been allowed to do Chinese currency business.

Hong Kong-based banks have become the largest group of "overseas" banks in the mainland of China, the China Banking Regulatory Commission (CBRC) said Thursday.

The CBRC has attributed the flooding into the mainland of Hong Kong-based banks to the Closer Economic Partnership Arrangement (CEPA), a policy the central government adopted to boost Hong Kong's economy.

The 58 Hong Kong banking operations include 45 branches, 10 sub-branches, one financial company and two joint venture banks, the CBRC said.

Hong Kong-based banks have also opened 24 representative offices in the mainland. Six Hong Kong banks have been allowed to do on-line businesses in the mainland.

(Xinhua News Agency December 31, 2004)