President of Bank of China Talked about Irregularity in New York Branch

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Last updated at: (Beijing Time) Wednesday, March 06, 2002

President of Bank of China Talked about Irregularity in New York Branch

President of the Bank of China indicated that the rectification of irregularity in the New York Branch will as believed produce a positive effect on the listing of its Hong Kong Branch. Liu noted the rectification of irregularity in the New York Branch this time has revealed many problems left over in history and improved the transparency of working system.

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Rectification of irregularity

According to the report of "Wen Wei Po" in Hong Kong, Liu Mingkang, President of the Bank of China, indicated that the rectification of irregularity in the New York Branch has sent a signal of strengthening management to investors. It will as believed produce a positive effect on the listing of its Hong Kong Branch.

Liu made remarks at the opening of NPC that the Hong Kong Branch prepared to list as soon as it finished its restructure last October. It is currently still busy with preparatory work, with an aim to present the financial data in accuracy after discovering that the accounting criteria between New York and Hong Kong is different in the course of preparation.

When asked about when and where the Hong Kong Branch will go for listing, Liu answered the issue has yet to be discussed further with departments concerned. As for the places to list, whether it'd be, as the hearsay goes, a trinity in Mainland, Hong Kong and New York at the same time, Liu said he couldn't give a definite answer for the time being.

A good lesson

Liu noted the rectification of irregularity in the New York Branch this time has revealed many problems left over by history and improved the transparency of working system. It is a good thing for the bank to resolve problems and strengthen confidence in rectification. If there's any effect, it is a positive rather than a negative one.

He added it's by no means strange for state-owned commercial banks to suffer such problems. It will lead to worse consequence and more suspects should the fact be covered up. Therefore, transparency and credibility must be stuck to in global markets. We will obtain support from outside so long as we are determined to open up with an unshakable attitude.

Irregularity committed by BOC branch in New York

Actions taken against misconduct by the Bank of China (BOC) branch in New York will be conducive to healthy development of the banking industry, a spokesman for the People's Bank of China, the central bank, said Monday.

The spokesman said that the BOC's New York branch was punished by the central bank and the US Office of the Comptroller of the Currency on January 18, and the case indicated the close cooperation between financial regulators of the two countries. >>details

by PD Online Staff Yang Ruoqian

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