Foreign Banks Open Branches

China made remarkable achievements in honoring its WTO commitments in 2007. In the five years since China's WTO accession, operational entities opened by foreign banks increased from 190 to 312.

In April, four branches of foreign-funded banks were locally incorporated and engaged in renminbi retail business, namely, HSBC Bank (China) Co. Ltd., Standard Chartered Bank (China) Ltd., Bank of East Asia (China) Ltd., and Citibank (China) Co. Ltd. More overseas banks are preparing to register their local branches or have filed applications. Most of them registered their China subsidiaries in Beijing and Shanghai.

Once locally incorporated, they are allowed to engage in all foreign and domestic currency business without quota limitations, including offering renminbi services to Chinese citizens. Foreign bank branches can only conduct foreign exchange business and offer renminbi services to corporate and institutional clients. A foreign bank can determine the makeup of its company in the light of its business strategy on a voluntary commercial basis.