China Economic ReviewA pilot social security system being run in Liaoning province has run short of money, forcing the government to divert funds budgeted elsewhere and hampering other reforms, Wall Street Journal said. The reason for the shortage of funds is that planners overestimated the ability of state enterprises to pay their contributions and failed to create […]
Some banks in Shanghai have been authorised to examine and approve foreign exchange transactions on the capital account, Xinhua reported. The move is part of China’s policy of loosening its foreign exchange management system and, if the experiment is successful, it will be extended to other banks across the country. Bank of Communications, based in […]
Hong Kong and Shanghai Bank (HSBC) is in talks to acquire a minority stake in the Bank of Shanghai, the Financial Times reported. HSBC said that any deal would be subject to regulatory approval and final agreement on the terms. Meanwhile, Citibank is in preliminary talks to take a 15 per cent stake in the […]
The People’s Bank of China has drawn up a timetable for the lifting of geographic restrictions on foreign bank branches after China joins the World Trade Organisation, People’s Daily said. Upon accession, foreign banks will be allowed to operate in Shenzhen, Shanghai, Dalian and Tianjin. Thereafter, year by year, the number of cities will be […]
Chinese banks are not ready for the competition they will face from foreign banks that will come after China’s accession to the World Trade Organisation, said Liu Mingkang, chairman of the Bank of China. China’s banks still face severe problems in their standards of governance and risk management and their levels of governance, profits and […]