Administrative Regulations of the People's Republic of China on Foreign-invested Financial Institutions (2001)
Administrative Regulations of the People's Republic of China on Foreign-invested Financial Institutions (2001)
Administrative Regulations of the People's Republic of China on Foreign-invested Financial Institutions (2001)
Order of the State Council of the People's Republic of China [2001]No.340
December 12, 2001
The Administrative Regulations of the People's Republic of China on Foreign-invested Financial Institutions has been adopted at the 50th Executive Meeting of the State Council on December 12, 2001 and is hereby promulgated, and shall come into force on February 1, 2002.
Premier Zhu Rongji
Appendix: Administrative Regulations of the People's Republic of China on Foreign-invested Financial Institutions (2001)
Chapter 1 General Provisions
Article 1 These Regulations have been formulated with a view to strengthening and perfecting the administration of foreign-invested financial institutions in China and promoting the steady operation of the banking industry to meet the demands arising from the work of opening to the outside world and economic development.
Article 2 The term "foreign-invested financial institutions" mentioned in the regulations is referred to the following institutions which have been approved to be established to operate within the territory of China according to the relevant laws and regulations of the People's Republic of China.
1. Foreign banks whose headquarters are within the territory of China (hereinafter referred to as solely foreign-invested banks);
2. Branches of foreign banks within the territory of China (hereinafter referred to as branches of foreign banks);
3. Joint venture banks within the territory of China established jointly by foreign financial institutions and Chinese companies and enterprises (hereinafter referred to as joint venture banks);
4.Foreign financial companies whose headquarters are within the territory of China (hereinafter referred to as solely foreign-invested financial companies);
5.Joint venture financial companies established jointly by foreign financial institutions and Chinese companies and enterprises (hereinafter referred to as joint venture financial companies).
Article 3 Foreign-invested financial institutions shall abide by the laws and regulations of the People's Republic of China and shall not do harm to the social and public interests of the People's Republic of China.
The normal operations and legitimate rights and interests of foreign-invested financial institutions shall be protected by the laws of the People's Republic of China.
Article 4 The People's Bank of China is the organization that is in charge of the administration and supervision of foreign-invested financial institutions; the branches of the People's Bank of China shall undertake the routine administration and supervision of the foreign-invested financial institutions in their respective areas.
Chapter 2 Establishment and Registration
Article 5 The minimum limit of registered capital for solely foreign-invested banks and joint venture banks shall be convertible foreign currencies on a par with RMB300 million; the minimum limit of registered capital for solely foreign-invested financial companies and joint venture financial companies shall be convertible foreign currencies on a par with RMB200 million. The registered capital shall be the paid-in capital.
The working capital of branches of foreign banks provided by their head offices shall be no less than convertible foreign currencies on a par with RMB100 million.
The People's Bank of China may, according to the needs of the business scope of foreign-invested financial institutions and the prudent supervision, raise the minimum limit of registered capital or working capital thereof, and prescribe the proportion of Renmingbi thereof.
Article 6 In applying for the establishment of a solely foreign-invested bank or a solely foreign-invested financial company, the applicant must be qualified as:
1. a financial institution;
2. having a representative office in China for at least two years;
3. having a total assets of no less than US$10 billion at the end of the year before the application is filed;
4. having a complete financial supervision and control system in the country or region where it is located, and to have been effectively supervised and controlled by the relevant competent authorities of the country or region where it is located;
5. having obtained approval for its application from the relevant competent authorities of the country or region where it is located;
6. having other prudent conditions prescribed by the People's Bank of China.
Article 7 In applying for establishing a foreign bank branch, the applicant must be qualified as:
1. having a representative office in China for at least two years;
2. having a total assets of no less than US$20 billion at the end of the year before the application is filed, and a rate of capital sufficiency of not lower than 8%;
3. having a complete financial supervision and control system in the country or region where it is located, and to have been effectively supervised and controlled by the relevant competent authorities of the country or region where it is located;
4. having obtained approval for its application from the relevant competent authorities of the country or region where it is located;
5. having other prudent conditions prescribed by the People's Bank of China.
Article 8 To apply for establishing a joint venture bank or a joint venture financial company, the applicant must meet the following conditions:
1.
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