Revised rules affecting foreign bank operations in China are expected to be issued by the State Council in November and may take effect around December 21, the Wall Street Journal reported, citing a foreign bank official. The proposed rules have prompted concern as they will force foreign banks to incorporate their local operations as Chinese entities and capitalize the entity with at least US$125.4 million if they want to do retail business in the Chinese currency. Chinese officials met with representatives of 30 foreign and joint-venture banks Wednesday to discuss the draft rules, according to a notice the China Banking Regulatory Commission sent to the banks. Foreign banks now own their Chinese branches from overseas headquarters. Under current regulations, foreign banks can handle loans and deposits in foreign currencies but they can provide yuan-denominated services only to enterprises in 25 cities. Foreign banks that don't want to incorporate their China operations locally would be allowed to offer foreign-currency services to all customers, but their yuan-denominated business would be restricted to companies, according to the CBRC notice.