Newsletter
IMPLEMENTING RULES AN-NOUNCED ON FOR-EIGN-INVESTED FINANCIAL IN-STITUTIONS
On 26 July 2004, the China Banking Regulatory Commission promulgated the Implementing Rules to the Administrative Regulations on For-eign-Invested Financial Institutions. The Im-plementing Rules provide more detailed rules covering the matters governed by the Regula-tions, including the establishment, registration and business scope of fully foreign-owned banks and finance companies, of foreign banks, and of joint-venture banks and finance companies. The Implementing Rules set out conditions and re-quirements for the various types of business that a foreign-invested financial institution may carry on with authorization from the People's Bank of China, including foreign exchange services to organizations located outside the PRC, to for-eign-invested enterprises, to foreign organiza-tions within the PRC, to representative organi-zations of Hong Kong, Macao, and Taiwan within the PRC proper, to foreign nationals, and to Hong Kong, Macao and Taiwan compatriots, as well as selected foreign exchange services to non-foreign-invested enterprises. They also lay down specific requirements for operating funds and registered capital for foreign exchange ser-vices to each of the above categories of cus-tomer.
The Implementing Rules prescribe time limits for preparatory work by a foreign-invested fi-nancial institution intending to conduct Ren-minbi business, or to expand the scope of its Renminbi business to new categories of cus-tomer. An institution applying to conduct a new category of business must pass review and au-thorization for that business category.