Foreign banks can offer foreign exchange services to institutional and retail customers in China from tomorrow, when the country officially becomes a member of the World Trade Organization (WTO), the country's central bank said yesterday.
However, the People's Bank of China said foreign banks intending to provide hard currency services to Chinese customers need to replenish themselves with additional capital.
The fresh opening move will be completed according to the terms of China's accession to the WTO.
Also under the terms, the central bank announced the experimental operations of foreign banks' local currency business in Shanghai and Shenzhen, which started in late 1996, will become official tomorrow. Foreign banks in Tianjin and Dalian, in Northeast China's Liaoning Province, can also apply for a renminbi business licence from tomorrow.
Foreign banks' local currency transactions will continue to be limited to foreign customers. The restrictions will be gradually lifted during a five-year period after China joins the trade body.
Tomorrow also marks the start of the central bank's acceptance of foreign banks' application for car buyers' consumer credit business, as well as the opening of financial leasing services. Overseas investors can apply to establish a wholly owned company or form joint ventures with Chinese partners to conduct financial leasing business, according to the central bank.
(China Daily December 10, 2001)
