Citi China has been granted final approval by the China Banking Regulatory Commission (CBRC) to commence operations as locally incorporated bank, and will be one of the first foreign banks in China to do so. As a locally incorporated bank, Citi will be able to provide unrestricted local currency retail banking and wealth management services to Chinese nationals, and will enjoy a regulatory framework similar to that of local banks.

1. Foreword
2. History and the Status Quo
3. Major Contributions
4. Fundamental Principles and Strategies in a New Stage
5. Prudential Supervision
6. Conclusion

China Banking Regulatory Commission

HSBC Holdings plans to double the size of its branch network in China this year with opening 30 to 40 branches and sub-branches, and hiring 1,000 people both this year and next, according to Bloomberg news. HSBC now employs about 2,700 people in China, with 14 branches in mainland Chinese cities and 21 sub-branches by the end of last year. The bank is the biggest international financial-services company in China, said HSBC.

This five-part special report looks at various aspects of treasury operations in China, including the status of both the domestic and the foreign banks, liquidity management, payments and collections, risk management and trade finance.

GTNews

China Banking Regulatory Commission (CBRC) has approved the launch of the postal savings bank, which will be wholly owned by the China Post Group.

The China Banking Regulatory Commission (CBRC) has announced that it has approved nine foreign-funded banks to transform their Chinese branches into locally incorporated banks registered on the mainland. The nine banks, all to be registered in Shanghai, are the Standard Chartered Bank, the Bank of East Asia, the Hongkong and Shanghai Banking Corp., the Hang Seng Bank, the Mizuho Corporate Bank, the Bank of Tokyo-Mitsubishi UFJ, the DBS Group, Citibank and the ABN Amro Bank.

Banco Bilbao Vizcaya Argentaria (BBVA), Spain’s second largest bank, has signed a strategic alliance with China CITIC Group to develop a leading financial group in Asia. BBVA will acquire 5% of China CITIC Bank (CNCB) for 鈧?01m with an option to increase to 9.9%. It will also purchase a 15% stake in CITIC International Financial Holdings (CIFH) for 鈧?88m and could increase this in the coming months. The alliance covers the development of retail and corporate banking in mainland China and Hong Kong.

By the end of 2005, 254 foreign banks have opened operating units in China, with a total asset of 87.7 billion dollars, accounting for 1.89% of all assets in Chinese banking industry, according to “The 2006 China Financial Stability Report” published by the People’s Bank of China.

China’s postal savings bank is to open by the end of this year, said Cai Esheng, vice-chairman of the China Banking Regulatory Commission (CBRC). The new bank will take over the savings business of China Post, which is to be restructured into a postal service group, and will become a joint-stock bank and go public in the future.

HSBC Holdings Plc. is betting on no-frills Internet banking with higher deposit rates to attract customers in Taiwan as it pioneers a no-branch bank model in Asia.