Foreign banks said they welcomed the new regulations issued by the Chinese government this week which will fully open China's banking sector to foreign competition on December 11.

Richard Yorke, president of Hong Kong and Shanghai Banking Corporation's (HSBC) China operations, said the release of the regulations marked a historical milestone for China's finance industry and also marked the fifth anniversary of China's entry into the WTO.

HSBC Group has 13 branches and 13 offices in China's mainland and a new Xi'an branch will be launched before the end of this year.

Makoto Motooka, the Shanghai branch director of the Bank of Tokyo-Mitsubishi UFJ, expressed his respect for the Chinese authorities in pushing forward the opening-up of its financial sector.

Motooka said his bank plans to promote business in China and the new regulations would provide strong support.

The new regulations issued on Wednesday lifted restrictions on Renminbi and foreign-currency transactions by solely foreign-funded banks and Sino-overseas joint venture banks.

"We hope to have the opportunity of discussing our future development with the Chinese financial authorities," said Motooka.

He also expressed his wish to enhance cooperation with local banks, saying it was necessary to cooperate with local banks which have many branches and are familiar with the local market.

To encourage overseas banks to register solely foreign-funded banks in China, the new regulations set equal supervision standards for overseas banks.

Yorke believes the local registration will have a positive influence on China's financial market.

ABN Amro Bank made a statement on the new rules, saying that they welcomed them and would give them their full support.

The bank also said that it would apply for registration of solely foreign-funded banks in the Chinese mainland and hoped to have the opportunity of operating Renminbi services for local residents.

Source: Xinhua