China Banking Regulatory Commission, Notice on Matters Relevant to Further Opening up the Banking Industry

Issued: December 3 2005

Main contents: Starting from December 5 2005, regions in which foreign-invested financial institutions may engage in renminbi business are extended to Shantou and Ningbo. At the same time, renminbi business in the five cities Harbin, Changchun, Lanzhou, Yinchuan and Nanning will be opened up to foreign-invested financial institutions earlier subject to the approval of the State Council (so the number of cities opened up to renminbi business will be increased from 18 to 25) (Article 1). The maximum level of operating capital for renminbi business for various types of clients (including PRC resident individuals) of foreign bank branches shall be lowered from the current Rmb500 million to Rmb400 million. Operating capital for renminbi business for various types of clients of branches of wholly foreign-owned and equity joint venture banks in China shall be lowered from the current Rmb300 million to Rmb200 million (Item Two).
Related legislation: PRC Regulations for the Administration of Foreign-invested Financial Institutions, Dec 20 2001, CLP 2002 No.1 p.5 and Implementing Rules for the PRC Regulations for the Administration of Foreign-invested Financial Institutions, Jan 29 2002, CLP 2002 No.3 p.7