China Information

Thursday, December 14, 2006

French Media Concerned About China’s Opening the Banking Market

On the fifth anniversary of the accession to WTO, China opened its bank market to foreign investment. From today on foreign-invested banks can run the entire RMB business. Finally they can be engaged in individual deposit business of Chinese citizens, up to RMB14.1 trillion (2005 year-end data). Prior to this they can only run corporate RMB business and individual foreign currency business in 25 cities. According to the comments in the Tribune, China still has to exert a lot of efforts in making economic growth in a more healthy way. A figure shows the unbalance of Chinese economic growth: there’s only 20% of enterprise investment that has got loans from banks. This ratio reflects the efforts made by the government for preventing overheating of investment in some areas but it also leads to difficulties for private enterprises to acquire for loans from banks. It’s actually the private enterprises that have enjoyed the highest revenue and created most of the working opportunities.

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