Hong KONG-funded banks Guangdong branch of the first station: Bullish Foshan

Including the Bank of East Asia and other foreign banks are optimistic about the good financial environment in Foshan, Foshan has been considered by the banking sector is "high income, low risk" area. 2008, Foshan Financial institutions of foreign currency deposit balance of 571.4 billion yuan, an increase of 16.93%, the balance of foreign currency loans 300.3 billion yuan, growth of 9.91%, banking head of foreign currency book profit of 9.749 billion yuan, an increase of 46.77%.　　IC Supply chart with the formal signing of the mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) "Supplementary Agreement VI" (hereinafter referred to as "CEPA Supplementary Agreement VI"), the expansion of the Hong Kong-funded banks in Guangdong province will be formally entered into the fast lane. Under CEPA Supplementary agreement six, since October 1, 2009, the branch set up by the Hong Kong bank in Guangdong province will be allowed to apply for the establishment of an off-site branch in the province.　　The scope of this undertaking includes the mainland corporate Bank of Hong Kong Banks and the Hong Kong banks which have not established corporate banks in the mainland but have branches in Guangdong province. A number of Hong Kong-funded banks in Guangzhou Branch senior in the interview with the reporter, said permission to open a branch will be conducive to its further infiltration in the Guangdong market, and backed by the concept of "guang-fo-cheng" but there is no Foshan of any foreign bank outlets, it is expected to become the first station of local banks to operate in different places.　　A number of Hong Kong-funded banks, including East Asia and Citic Ka Wah, have started to establish issues with the Foshan Finance office. A sharp reduction in the threshold of network laying "the most immediate benefit of this new commitment is that it broadens the scope of the business of the branch licence and reduces the operating capital threshold for the expansion of the site."　　"The governor of a Hong Kong-funded bank, Guangzhou branch, said to reporters.　　The governor told reporters that according to the relevant commitments entered into in the framework of CEPA, the Hong Kong bank's registered corporate bank in the mainland applied for the opening of a branch, and its working capital shall not be less than 100 million yuan, and the minimum threshold for operating funds under a branch licence is 10 million RMB. Several foreign bankers told reporters that under the current policy permission, the Hong Kong Bank's branch licence in Guangzhou can only apply for a new city network, and if you want to enter the Pearl River Delta city of Foshan and Dongguan, you will need to apply for a new branch licence to the CBRC.　　This is not only very stringent on the operating capital threshold, but also because the CBRC is sure of the total and pace of approvals for new branches, it is difficult to widen the market by setting up branches. "The application of the branch is much easier because the branch is not an independent operating agency in nature, and the financial and taxation branches are unified management, so it is more convenient to supervise." According to the current provisions, the branch set up the application only to be reported all over the CBRC, although also faced with the examination and approval link silver monitoring system rhythm, but the overall is more simple than a branch licence application.　　The governor of the Guangzhou branch of a Hong Kong-funded bank said to reporters. A number of Hong Kong-funded banks in Guangzhou branch of the high level to reporters that, because the State Council has already opened a separate branch into the framework of CEPA, so the nextOne step only wait for the regulatory layer to introduce detailed code of practice. "I estimate that the establishment threshold of the branch will be the same as the capital threshold of the same city branch, but because there may be some differences in tax issues, the main communication coordination should be in this respect."　　The governor of a Hong Kong-funded bank in Guangzhou said to reporters.　　The bank has contacted with the Hong Kong Bank of Foshan, the reporter said, according to the current Guangdong province of Hong Kong banks to establish a branch of the foreign branches of the degree of intervention, is expected to be the first step in the back of the "Guang-fo with the city" concept of Foshan Open branch. "Several cities are interested in our local branches, but from the perspective of Guangdong Province, Foshan first spread the possibility is relatively large." We have also discussed this matter with Foshan financial office, hoping to open a branch network in the local area. "The governor of a Hong Kong-funded bank, Guangzhou branch, told reporters that he had also learned from the Foshan financial Affairs Office that the Hong Kong banks, including the Bank of East Asia and Citic Ka Wah, had started to establish with the local government branches. "We expect that applications for these branches will be approved in the year, since the Cepa Supplementary agreement will not take effect until October, and banks are now preparing for the approval of the CBRC, which is quite ample time," he said.　　Foshan, the relevant head of the financial office said to reporters. Reporter learned that the current and Foshan to carry out the relevant communication bank does not include Standard Chartered, HSBC and other large-scale foreign banks. "This is because the registration of these banks ' sponsors is not in Hong Kong and therefore, under the framework of CEPA, they cannot enjoy policy facilitation in this regard."　　Foshan, the official of the financial office said to reporters. In addition, some Hong Kong-funded bankers said in an interview that although the current policy of Kaikoko allow them to open branches in Guangdong, but in view of the current financial market external environment instability, the company will be in the first time to apply in Guangdong Province to set up an off-site branch is difficult to say. "This policy is of course beneficial to our business development, but companies should consider the current financial situation to make judgments and not necessarily compete for the first batch of applications."　　A deputy governor of the Guangzhou branch of a Hong Kong-funded bank said to reporters. But most Hong Kong banks said the application would be made clear because of the relatively low barriers to setting up branches. "At least in Foshan to set up a network, our funding will be more extensive." As long as the current branch has a new branch of the index, we will apply.　　Said the governor of a Hong Kong-funded bank, Guangzhou branch.　　This reporter Locke background Foshan introduced foreign banks for many years as Guangdong small and medium-sized enterprises gathered in Foshan, for many years has been to introduce foreign banks and efforts. Although Standard Chartered, HSBC, East Asia, wing hang and other foreign banks have been in Foshan to carry out financial operations, but there is no foreign bank in Foshan, the industrial structure, quality, the external economic ratio and the "financial size" and other comprehensive quality, foreign banks in Foshan to set up outlets should be a lucrative business, But despite years of Foshan government has been a convenient way to drumForeign banks in Foshan to set up institutions, a number of foreign banks have expressed the idea to enter, but may be subject to the former can not be a remote spending line and must open a branch of the licence restrictions, Foshan to introduce foreign banks has been unable to "bear fruit." With the release of Hong Kong-funded banks in Guangdong, the threshold for Hong Kong banks to set up outlets in Foshan has dropped sharply, and in the face of the huge credit market potential and local government-assisted Foshan, it is believed that Hong Kong banks will not miss the opportunity to settle down.