Over the past 20-odd years, China's financial institutions in
the special economic zones, coastal open cities and inland central
cities have approved a range of wholly foreign-owned and
Chinese-foreign joint venture financial institutions. Every year
since 2002, China has increased the number of cities where foreign
banks are allowed to handle RMB business, and within five years
such banks will be allowed to handle RMB business in any city. At
the end of 2004, the total assets of foreign financial institutions
in China reached over US$47 billion; foreign banks were allowed to
handle RMB business in 16 areas, and 62 foreign banks from 19
countries and regions set up 191 business institutions in China, of
which 116 were approved to handle RMB business. There were 211
foreign bank branches in China.
 |
The CSRC has approved the establishment of 13 Sino-foreign equity
joint venture fund management companies, and started to formally
handle the application of establishment of joint venture fund
management companies with a maximum 49 percent?foreign share;
the CIRC declared that: from December 11, 2004 on, foreign
insurance companies could handle health insurance, group insurance,
life insurance and annuity insurance businesses; regional
restrictions on establishing wholly foreign-funded insurance
institutions were canceled and the proportion of the foreign share
in joint venture insurance agencies was allowed to reach 51
percent.
Foreign banks have expanded their China-related business scope. In
November 2003, the CBRC started to implement new policies, e.g.,
permitting foreign banks to provide RMB services to all kinds of
Chinese enterprises in areas with open RMB business (previously,
these banks' RMB services were restricted to foreign-funded
enterprises, foreigners and people from Hong Kong, Macao and Taiwan
in cities with open RMB business). The new policy also encourages
qualified international strategic investors to join the
restructuring and reforming of China's banking and financial
institutions on a voluntary and commercial basis.
Meanwhile, all China's commercial banks have set up branches
overseas, and started an international credit business. The Bank of
China ranks first in the number and scale of overseas outlets. In
1980, China resumed membership of the World Bank, and returned to
the International Monetary Fund. In 1984, China started business
contacts with the Bank for International Settlements. In 1985,
China formally joined the African Development Bank and in 1986
formally became a member of the Asian Development Bank.