Recently, a news spokesperson for the People's Bank of China (PBOC) pointed out that after joining the World Trade Organization (WTO), China will earnestly keep its promise of opening its banking sector to the outside world, further expedite and deepen financial reform, strive to do various fields of work well, promote what is beneficial and abolish what is harmful, constantly enhance the international competitiveness of the domestic banking sector and boost the steady and healthy development of the banking sector in the process of reform and opening up.

In accordance with related WTO accords, China will gradually lift restrictions on foreign-funded banks. When it is formally joining the WTO, China will cancel regional and client limitations to foreign-funded banks in handling foreign exchange business, then foreign banks can open foreign currency business to Chinese-funded enterprises and Chinese citizens.

China will gradually lift regional restriction on foreign-funded banks in handling Renminbi business:

When joining the WTO, China will open Shenzhen, Shanghai, Dalian and Tianjin;

In one year after WTO entry, it will open Guangzhou, Zhuhai, Qingdao, Nanjing and Wuhan;

In two years after WTO entry, it will open Jinan, Fuzhou, Chengdu and Chongqing;

In three years after WTO entry, it will open Kunming, Beijing and Xiamen;

In four years after WTO entry, it will open Shantou, Ningbo, Shenyang and Xi'an;

In five years after WTO entry, it will lift all regional restrictions.

China will gradually abolish client restrictions on foreign banks in relation to Renminbi business:

In two years after its WTO accession, China will allow foreign banks to handle Renminbi service for Chinese enterprises;

In five years after its WTO entry, China will permit foreign banks to provide services for all Chinese clients, it will also permit them to set up business outlets in the same region, requirements of examination and approval are same with Chinese-funded banks.

In five years after its WTO entry, China will abolish all existing non-cautious measures regarding restrictions imposed on foreign banks in their ownership, forms of operation and establishment, including their branch offices and the issuance of licenses.

Foreign-funded non-banking institutions are allowed to be established to provide automobile consumption credit business, which enjoy equal treatment with the same type of Chinese-funded financial institutions; foreign-funded banks can, within five fives after WTO entry, provide automobile credit service for individual Chinese residents. Foreign-funded financial leasing companies are allowed to provide financial leasing service within the same period of time as that of Chinese firms.

According to statistics from the People's Bank, by the end of September this year, there had been nearly 190 business agencies of foreign-funded banks in China, including 158 branches, set up under which were six sub-branches, most of them are concentrated in places such as Shanghai, Shenzhen, Beijing, Guangzhou and Tianjin. Foreign-funded banks have total assets worth US$44 billion, including loans worth US$18.6 billion and deposits worth US$6.5 billion.

(People's Daily December 6, 2001)