The world's local bank
HSBC to provide RMB service to local residents
12 December 2006
The Hongkong and Shanghai Banking Corporation Limited today announced that it has received confirmation from the China Banking Regulatory Commission (CBRC) to include in its RMB licence the new time deposit service to Chinese citizens for amounts no less than RMB1 million.
Richard Yorke, Chief Executive Officer China at The Hongkong and Shanghai Banking Corporation Limited, said: "China has fully honoured its WTO commitment by further opening the RMB market. This has provided HSBC with new opportunities to expand our service range. We are delighted to be one of the first to receive confirmation from the CBRC to provide the new RMB service to local residents ahead of our local incorporation. We will be able to provide unrestricted local currency banking services upon completion of the local incorporation process. With HSBC's international network and expertise, we look forward to providing world-class and diversified banking services to Chinese citizens."
In accordance with the new rules, foreign banks which already have approval to provide RMB banking services to domestic companies can offer the new deposit service to Chinese citizens before incorporating locally. Upon changing its business licence, HSBC will roll out the new time deposit service in nine cities where it has already been providing RMB banking to domestic companies and non-PRC nationals. The nine cities include Beijing, Dalian, Guangzhou, Qingdao, Shanghai, Shenzhen, Tianjin, Wuhan and Xiamen – the widest geographical reach by any foreign bank in China.
Earlier, HSBC had filed its application for local incorporation and received CBRC's acknowledgement of receipt in writing on 11th December, marking the first step in the approval process.
Richard Yorke said: "We regard local incorporation as a positive development for the local market. It will enable us to further expand our network and service range, in particular our RMB financing ability for the benefit of our customers in the China market. We are following the guidance of the CBRC and all relevant authorities regarding the approval requirements and process. And we are moving actively towards locally incorporating our commercial banking business in Shanghai where HSBC was founded and has had a continuous presence for 141 years."
Media enquiries to Dan Dan Chang on [86] (21) 3888 1807
Notes to editors:
The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding and a principal member of the HSBC Group which, with around 9,500 offices in 76 countries and territories and assets of US$1,738 billion as at 30 June 2006, is one of the world's largest banking and financial services organisations.
HSBC in Mainland China
HSBC's network in mainland China currently comprises 28 outlets, including 13 branches (in Beijing, Chengdu, Chongqing, Dalian, Guangzhou, Hangzhou, Qingdao, Shanghai, Shenzhen, Suzhou, Tianjin, Wuhan and Xiamen) and 15 sub-branches (in Beijing, Dalian, Guangzhou, Shanghai, Shenzhen and Tianjin). Approval has been obtained to open a branch in Xi'an this year. HSBC's China head office is based in Pudong, Shanghai.
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