HK owns most financial institutions in the mainland

With 58 subsidiaries operating on the Chinese mainland, Hong Kong banking industry owns the biggest mainland presence in comparison with other overseas peers.

A briefing released here Wednesday by the China Banking Regulatory Commission (CBRC) said that the number, including 45 branches, 10 subbranches, one financing company and two joint ventures, makes up one-quarter of the business establishments set up by overseas banks in the mainland.

Besides, there are 24 representative offices from Hong Kong scattered across the mainland.

Of all these business establishments set up by banks from Hong Kong, 38 are approved to deal in Renminbi business, about one-third of the total licensed foreign banking institution.

Of the 13 foreign banks allowed to launch on-line business, there are six Hong Kong banks and three indigenous commercial banks with investment from Hong Kong.

The briefing said that CBRC would continue to support the development of Hong Kong banking industry on the mainland. Hong Kong banks were welcomed to participate in indigenous banking reform and contribute to the common prosperity of both Hong Kong and the mainland.

In August, 2003, the banking authorities from Hong Kong and the mainland signed a special cooperation memorandum to implement the Closer Economic Partnership Arrangement between the two regions.

As the economy of Hong Kong and the mainland becomes increasingly integrated, the market demand for financial services on the mainland keeps rocketing and thus provides valuable opportunities for the Hong Kong banking industry, said the briefing.

Source: Xinhua