Laws of the People's Republic of China

The People's Bank of China

Announcement of the People's Bank of China on Relevant Issues Concerning the Market Entry of Financial Institutions with Foreign Investment

[2001] No.1

December 9, 2001

With its official accession to the WTO on December 11, 2001, China will fulfill its commitment to open its banking market step by step, and relevant issues are hereby announced as follows:

I.

As of December 11, 2001, the limits on the objects of the foreign exchange business of the financial institutions with foreign investment shall be abolished. The objects of the foreign exchange business of financial institutions with foreign investment may be extended to all the entities and individuals within the territory of China, but they should also increase their operation funds or registered capitals accordingly, change their business licenses or their legal person licenses for engagement in the financial business.

II.

As of December 11, 2001, the financial institutions with foreign investment established in Shanghai and Shenzhen shall be allowed to engage in the RMB-related businesses, and those established in Tianjin and Dalian shall be allowed to apply for engagement in the RMB-related businesses.

III.

As of December 11, 2001, the foreign-funded non-banking financial institutions may apply for establishing solely-funded or equity joint automobile financial services companies according to the relevant provisions to be issued by the People's Bank of China very soon and engage in the business of giving loans for buying automobiles.

IV.

As of December 11, 2001, foreign investors may apply for solely-funded or equity joint financial charter party companies according to the Measures for the Administration of Financial Charter Party Companies and provide financial charter party services.

V.

The People's Bank of China will, according to the amended Regulation of the People's Republic of China on the Administration of Financial Institutions with Foreign Ivestment and the Detailed Rules for Implementation the Regulation of the People's Republic of China on the Administration of Financial Institutions with Foreign Investment, accept various applications of the financial institutions with foreign investment.

VI.

The applications that the financial institutions with foreign investment have submitted to this bank for establishing institutions shall remain to be valid, but they shall submit supplementary materials as pursuant to the provisions of the amended rules.