Standard Chartered plans to launch China bank next month - UPDATE |
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Tue, 13 Mar 2007 12:20
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BEIJING (XFN-ASIA) - Standard Chartered plans to launch a locally incorporated entity in China next month, and aims to have over 40 outlets nationwide by the end of this year, said Peter Sand, Global CEO of Standard Chartered Group.Sand told reporters in Beijing that the new firm will be a wholly owned subsidiary of Standard Chartered PLC once it gains regulatory approval. He added that approval is expected have ry soon.'The banking unit will offer yuan currency services to local residents, as permitted by local banking regulations for locally-incorporated financial institutions. The bank also plans to upgrade its three representative offices once the planned local incorporation wins approval.Beijing issued new banking regulations last year requiring foreign banks to incorporate locally in order to gain full access to the China market. China is opening its financial market as part of its pledges to the World Trade Organization.Under the new rules, foreign banks are required to have registered capital of 1 bln yuan for their Chinese units and capitalize each branch at 100 mln yuan if they want to conduct retail yuan business in the domestic market.Foreign banks are limited to taking deposits of not less than one mln yuan per transaction from Chinese customers if they do not incorporate locally.Sand said Standard Chartered, which already owns 19.99 pct of the Tianjin-based Bohai Bank, is not ruling out further investments in China.He did not give an specific investment targets, however.According to media reports, Standard Chartered is also in talks with China Everbright Bank for a potential share purchase.Sand also said Standard Chartered is in the early stages of talks to offer rural finance services in China though he did not give further details.( 1 usd = 7.74 yuan )will.davies@xfn.comjuan.chen@xfn.com
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Standard Chartered plans to launch local China entity next month 