ABN AMRO Bank of the Netherlands announced the establishment of ABN AMRO (China) Co. Ltd., a locally incorporated branch, in Shanghai on Tuesday.
The new company, with a registered capital of 4 billion yuan (US$526 million), was set up following the approval of the China Banking Regulatory Commission (CBRC) for AMRO's local incorporation in China, according to the bank.
"Our local incorporation marks a new milestone in the bank's 104-year history in the Chinese market. The new entity provides us with a broader scope for development and will be a powerful impetus to further accelerate our growth in China," Piero Overmars, AMRO managing board member, told reporters.
The Shanghai-headquartered new company will actively explore new financial products and expand its RMB-denominated banking services in China, according to Linda Wong, executive for ABN AMRO China.
Established in 1824, ABN AMRO currently has 14 outlets and employs more than 1,000 staff in China. The bank plans to triple the size of its business in China within the next five years, expanding its network to more than 20 outlets by the end of 2008.
Foreign banks were previously not allowed to offer foreign-currency services to individuals on the Chinese mainland, although they could provide both local and foreign-currency services to enterprises.
China fully opened its banking sector to foreign banks last December in line with the commitments it made when joining the World Trade Organization in 2001. But the country's rules stipulate that overseas banks must be locally incorporated before they can carry out RMB retail business.
Earlier in April this year, four foreign-funded banks -- HSBC, Citibank, Standard Chartered Bank and Bank of East Asia -- officially began business as the first batch of locally incorporated overseas financial companies approved by CBRC.
These banking companies were allowed to launch a full range of forex services and RMB business, including RMB retail banking for ordinary Chinese citizens.
(Xinhua News Agency July 4, 2007)
