China plans to issue a rule allowing overseas banks to deal with renminbi business about a month before the country fully opens its banking sector on December 11, state media reported. The date is in line with the country's World Trade Organization commitments. Six foreign banks have already moved towards turning their operating branches into locally registered corporations, the China Banking Regulatory Commission (CBRC) said. They are HSBC, Citibank, Standard Chartered, Bank of East Asia, Hang Seng Bank and DBS Group. "The new rule encourages foreign banks to register locally, which will have a much lower threshold to enter the Chinese market than registered abroad banks," the CBRC said in the draft rule. "This will benefit foreign banks' long-term development."
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