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Overseas Banks Operate Well in Shenzhen
Eight overseas banks approved to do business in Chinese currency in Shenzhen lent out two billion yuan in loans and raked in 29 million yuan in interest earnings in the first quarter of the year.
Information from the local taxation administration said the overseas banks turned in 2.8 million yuan in taxes for business operations in the same period.
Granting foreign banks with the right to do business in Chinese currency yuan is an important step in opening up the financial sector in China.
This has helped improve the confidence of foreign banks in investing in Shenzhen and attracting more overseas banks to the special economic zone. Some 20 overseas banks have built branch organizations in Shenzhen.
The capital needed by overseas banks in Shenzhen mainly comes from inter-bank loans, as the eight overseas banks have all signed medium- and long-term yuan loan agreements with local Chinese banks.
The overseas banks then lend the Chinese currency loans to overseas-financed ventures in Shenzhen, a regional financial center in south China.
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