Chinanews, Beijing, Mar. 9 – The China Banking Regulatory Commission (CBRC)last week approved the preparation work done by HSBC, Citibank, Standard Chartered, and Bank of East Asia, for setting up a subsidiary bank in China. As the first batch among foreign banks, these banks have submitted their application to CBRC with regard to setting up their subsidiaries in China. If everything goes well, they might be able to launch Renminbi service in April, the Beijing-based Star Daily reported.

 

HSBC had finished related preparation work and the work had gained the approval of CBRC on March 2, said Richard Yorke, HSBC's general manager in China.

 

“We submitted our application (for setting up a subsidiary bank in China) to CBRC on March 5 and the application has been accepted by CBRC,” he said.

 

HSBC had put a lot of resources into the preparation work. Since local registration will produce a very favorable impact on the long-term development of China's financial market, HSBC hopes that it can set up a subsidiary bank in Shanghai as soon as possible, he added.

 

As for Standard Chartered and Bank of East Asia, this reporter was told that their preparatory work had also been approved by the CBRC's arm in Shanghai. The two banks have submitted their applications and hope that they can be approved.

 

Preparation work made by Citibank has also won the approval of CBRC.

 

However, five other foreign banks have not got the nod from CBRC with regard to their preparation, due to various reasons.

 

The four foreign banks are very optimistic about their performance in future after they launch the Renminbi service in China.