The Hong Kong and Shanghai Banking Corporation Limited (HSBC) announced in Shanghai on Tuesday that it has received the official confirmation to provide the deposit service to Chinese citizens for amounts no less than 1 million yuan (US$127,550).

Richard Yorke, CEO China of HSBC, said "We are delighted to be one of the first to receive confirmation from the China Banking Regulatory Commission (CRBC) to provide the new RMB service to local residents ahead of our local incorporation."

"China has fully honored its WTO commitments by further opening the RMB market. This has provided HSBC with new opportunities to expand our service range," Yorke said.

China's new regulations on the administration of foreign-funded banks took effect on Monday, marking the full opening of the country's banking sector to foreign competitors.

Under the regulations, China will allow foreign-funded banks to conduct Renminbi business for Chinese citizens in line with its WTO commitments.

The Chinese government is encouraging foreign banks to incorporate locally and set up subsidiaries to minimize risks for Chinese customers.

HSBC had filed its application for local incorporation and received CRBC's acknowledgement of receipt in writing Monday, marking the first step in the approval process.

(Xinhua News Agency December 13, 2006)