China Issues Governing Regulations for Overseas Financial Institutions

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Last updated at: (Beijing Time) Sunday, December 30, 2001

China Issues Governing Regulations for Overseas Financial Institutions

China's State Council issued a new set of governing regulations for overseas financial institutions Saturday.

The regulations provide systematic explanations and requirements regarding the registration, business scope, supervision, liquidation and liabilities for overseas financial institutions.

According to the regulations, solely-funded foreign banks, branches of foreign banks, and jointly funded banks will be entitled to engaging in a variety of businesses approved by the People's Bank of China.

The regulations also designate the detailed requirements for overseas financial institutions that want to run Chinese Renminbi businesses in China.

Only those that have run business for at least three years in China and have made profits for two years running will be permitted to operate Renminbi business, according to the regulations.

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