People's Bank of China, Questions Relevant to the Market Entry of Foreign-funded Financial Institutions After the Promulgation of the «PRC, Administration of Foreign-funded Financial Institutions Regulations Implementing Rules» Circular

Issued: January 29 2002

Main contents: The Circular addresses issues that may arise following the effectiveness of the PRC Administration of Foreign-funded Financial Institutions Regulations (the Regulations) and the PRC Administration of Foreign-funded Financial Institutions Regulations Implementing Rules (the Implementing Rules). If a change occurs in the scope of business of an operational foreign-funded financial institution due to the application of the Regulations, the institution shall change its Financial Business Permit pursuant to the Regulations and the Implementing Rules. To obtain a new permit, the institution may have to bring its paid-up capital or foreign exchange business working capital up to the level required by the Regulations for the type of business that the institution engages or will engage in (Section One). Previously submitted application materials for establishment of foreign-funded financial institutions are still valid but additional materials may be required in accordance with the Regulations and the Implementing Rules (Section Two(1)). All foreign-funded financial institutions are required to report by May 1 2002 to the local branches of the People's Bank of China the products that they began to offer to customers before February 1 2002 (Section Three). A grace period of six months is given to all foreign-funded financial institutions to achieve full compliance with the relevant provisions of the Regulations and Implementing Rules (Section Four).
Related legislation: PRC Administration of Foreign-funded Financial Institutions Regulations, Dec 12 2001, CLP 2002, No.1 p5 and PRC Administration of Foreign-funded Financial Institutions Regulations Implementing Rules, Dec 20 2001, CLP 2002 No.3 p.77