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TWN Info Service on Finance and Development (Nov07/07) 15 November 2007
The
World Trade Organization (WTO) has taken up the issue of China’s remarks came at a meeting of the WTO Committee on Trade in Financial Services which discussed the transitional review of China’s implementation of its financial services commitments, in relation to Section 18 of its protocol of accession. Questions
were raised with regard to Below is report on the deliberations of the committee. It was published in the SUNS #6365, Wednesday, 14 November 2007. This article is reproduced here with the permission of the SUNS. Reproduction or recirculation requires permission of SUNS (sunstwn@bluewin.ch). With
best wishes
The
World Trade Organization (WTO) took up the issue of According
to trade officials, Questions
were raised with regard to According to trade officials, in the area of insurance, concerns were raised with regard to high minimum capital requirements for life and non-life insurance companies, branch approvals, and restrictions on reinsurance business. In banking, trade officials said that concerns were raised on amongst others the exclusion of branches of foreign banks from local currency retail business, high minimum capital requirements, and foreign ownership limits for existing Chinese banks. Concerns in relation to securities covered issues such as plans to impose an equity cap on foreign credit rating agencies, moratorium on licensing of new securities firms, rules governing mergers and acquisitions, and possible limitation on foreign equity in securities brokers. According
to trade officials, Before
responding to the questions submitted, In
its statement, With the completion of transitional periods in its schedule, said China, “the banking and insurance sectors in China are almost fully opened, while foreign companies can hold as much as 49% equity shares in the securities sector.” Foreign
services providers have been seeing their access to In
the banking sector, A
large number of them came from the In
the case of the EC, in addition to 46 direct branches from the EC, there
were four subsidiary banks with 27 local branches in As
to In
terms of assets, by the end of December 2006, the total assets of foreign
banks in In
insurance, Foreign
insurance companies reaped an insurance premium income of 14.21 billion
RMB (renminbi), which was 4.24 times higher than it was at the time
of In the securities sector - which China said is still in its infancy with a history of only 15 years characterized by volatility - it approved, by the end of September 2007, eight joint-venture securities companies and 28 joint venture fund management companies. It
expressed hope that the major beneficiary members of It
becomes the first Chinese bank to get approval to open a branch in the
It expressed hope to get more licenses not only in the United States but also in the other countries mentioned above, arguing that Chinese banks are willing to contribute to the host economies and are well regulated to control risks, as demonstrated by their performance in the recent sub-prime crisis. “Following
due regulation of the Chinese banking regulator, the Chinese banks are
far less affected by the crisis than their counterparts in major financial
powers,” said
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