Laws of the People's Republic of China

The People's Bank of China

Circular of People's Bank of China on Issue Concerning Implementing the Measures on Administrating the Financial Companies of Enterprise Groups

YinFa [2000] No.218

July 13, 2000

The branches and business management departments of People's Bank of China, financial companies supervised directly by the General Bank:

Measures on Administrating the Financial Companies of Enterprise Groups (hereinafter referred to as Measures) is issued by Decree No.3 [2000] of People's Bank of China, hereby notify the relevant items on implementing the Measures:

1.

On the problem of interim of the financial company

The financial company set up before the promulgation of the Measures should be standardized according to the requirements of Measures. The increase of the capital, the adjustment of the business scope, the amendment of rules and the change and distribution of the finance license should be finished before June 30, 2001. The businesses that don't coincide with the Measures should be cleaned off in time. People's Bank of China will check the implementation of Measures in each financial company from July 3, 2001.

2.

On the problem of branches

The financial company can't set the branches in principle, but it shall be handled separately if the corporate body is changed into branches as the result of reorganization of the enterprise group.

3.

On the problem of transferring and closing an account inside of the financial company

Transferring and Closing an account inside a financial company should be strictly limited among the member units. It should report to People's Bank of China for re-approval for the finance company that has already operated this kind of business and needs to carry on the business. At the same time, the company should be standardized according to requirements.

4.

On the problem of issuing bond of the financial company

With a view to raising middle or long-term fund to support the technique reform of the enterprise and meet the index of proportion of assets and liabilities, all financial companies can apply for issuing bond of the financial companies. Each branch and business management departments of People's Bank of China should prepare well for the issue of bond of the finance companies in the district under its jurisdiction.

Each branch and business management departments of People's Bank of China should organize the financial companies in the district under its jurisdiction to study and implement the Measures and adjust promptly the criterion according to the Measures. They also should report the problems happening during the implementation of the Measures to the General Bank in time.