The Hongkong and Shanghai Banking Corp (HSBC) has become the first foreign bank to offer foreign currency services to Chinese citizens and companies in Beijing, the bank said on March 27.
HSBC has also been given the green light by the central bank to offer the same kind of services in Shanghai, the global banking giant said in a statement.
Citibank last week said it had been given the go-ahead to offer retail foreign currency banking services to Chinese customers in Shanghai, making it the first foreign bank to obtain approval in China.
The long-awaited licenses to Citibank and HSBC follow the first such approval granted by the central bank to a joint-venture bank, Xiamen International Bank, in earlier March.
Until now, foreign banks in China have only been allowed to serve foreign customers or foreign-funded firms.
The new licenses pave the way for Citibank and HSBC to set up foreign currency savings accounts and offer loans for Chinese clients.
On entry to the World Trade Organisation (WTO), China promised to grant foreign banks the right to offer retail foreign currency services to Chinese citizens.
(China Daily March 28, 2002)
