Guangdong Capable of Competing With Overseas Banks

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Last updated at: (Beijing Time) Monday, November 26, 2001

Guangdong Capable of Competing With Overseas Banks

The financial sector of Guangdong Province, China's forerunner of the reform and open-up drive, is fully capable of competing with foreign banks after the nation's entry into the World Trade Organization (WTO).

Ma Jing, head of People's Bank of China Guangzhou Branch, said Monday in an interview with Xinhua that starting from December 11,overseas banks in Shenzhen of Guangdong will be allowed to do business in the Chinese currency renminbi.

Meanwhile, overseas banks in Guangzhou, the provincial capital,Zhuhai and Shantou cities, all in Guangdong, will also be permitted to do business in Chinese currency in one, two and threeyears, respectively, Ma said.

Ma believed that Guangdong is well-positioned for the fierce competition that will come with a well-developed, multi-polar financial setup, in addition to its economic strength and experience gained through exchanges with the outside world in the past two decades.

But he admitted that as the forerunner of China's reform and opening, Guangdong will be the first to face challenges on its financial front from foreign banks.

Ma added that rational competition between Chinese and overseasbanks could only advance the development of China's financial sector, including that of Guangdong.

The proposal on China's accession to the WTO was passed on November 10, during the Doha meeting in Qatar, but China is to be formally inducted as a WTO member on December 11.

Once China enters the world trade body, the country will also gradually open more fields to overseas investors, including banking, insurance, telecom, trade, tourism and commerce.