HSBC nears last hurdle for incorporation in China
click rate:2741 issue time:2007-03-10 08:12

Mar. 7, 2007 (China Knowledge) – HSBC <HSBA> <HBC> <5> has applied for a final approval to incorporate in China, after having received an inspection approval from the China Banking Regulatory Commission (CBRC), reported The Beijing News.

HSBC has already completed internal preparations, with a positive report from CBRC being received on Mar. 2, said the CEO of HSBC China, Richard Yorke. Market watchers believe that HSBC can be locally incorporated by the end of March.

HSBC is one of the first two overseas banks to file for final regulatory approval. The other bank is Citigroup.

In December last year, the first batch of nine overseas banks including Hang Seng Bank <11>, Mizuho Corporate Bank, Bank of Tokyo-Mitsubishi UFJ, DBS Bank and ABN Amro Bank N.V. applied to incorporate in Shanghai. Lenders such as ABN Amro expect an inspection in two weeks.

Banking regulations in the Mainland require foreign banks to obtain approvals for internal preparations before local incorporation can take place. After incorporating locally, overseas banks can then offer a wide range of RMB services.