China has been steadily opening its banking sector to foreign investors and this process will continue to the end of 2006. By then all restrictions on foreign banks will be lifted.

Speaking at the Second China-Russia Financial Forum held in Beijing on Thursday, a senior Chinese official said foreign banks have become an important part of the Chinese banking system. He added China would adopt preferential policies to encourage foreign banks to purchase shares in Chinese banks.

The senior official Tang Shuangming, vice chairman of China Banking Regulatory Commission, pointed out that China has approved 12 branches and 25 representative offices of foreign banks, and authorized 12 foreign banks to conduct on-line banking business since China acquired World Trade Organization membership in December 2001. And he promised China would continue to implement its WTO commitments.

Tang said, "Under its WTO commitments, China will further expand banking business available to foreign investors, and restrictions will be completely removed by the end of 2006."

China has now registered 191 foreign banking institutions, and 209 representative offices of foreign banks have been established. 73 foreign banks are allowed to conduct RMB business and half of the foreign banks in China can conduct full forex business.

(CCTV.com November 29, 2003)