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Reports on private investors and scholars' submission of proposals to establish five private banks to the China Banking Regulatory Commission (CBRC) in the belief that the state monopoly of the banking sector must be broken in light of the country's bad debts. Commercial bank status for the five banks if approved by the CBRC; Government's concern about the credibility of private banks; Reasons why China should develop more private banks.

The article reports on the recognition of Citibank Corp. as the leading foreign bank entering the financial market in China. The bank is able to offer excellent tailored services to its individual clients. Citibank covers the maintenance and appreciation of asset values for middle and upper level clients. The bank is also active in buying shares in China's commercial banks. INSET: Citibank's Business Development in China.

The article reveals that China Development Bank (CDB) has wiped out the most formidable obstacle in its business model reform. Accordingly, Central Huijin immediately injected $20 billion into CDB, providing high hopes for the implementation of its reform plan in 2008. CDB came into being in 1994 together with the Export-Import Bank of China and the Agricultural Development Bank of China. The reform plan of CDB is scheduled for implementation in 2008, but its tone was already set at the 2007 National Financial Work Conference.

The article addresses the overseas expansion of China's banks as well as the establishment of operations of multinational companies in China. China's commercial banks are striving to deliver a better performance on the global financial stage. China is opening up its financial industry in two ways. The first way is allowing foreign banks to invest in the Chinese market. The second way is encouraging domestic banks to seek shares of overseas markets.

The article focuses on the policy of the Chinese government to allow qualified domestic institutional investors (QDII) including banks, securities companies and insurers ton invest in overseas stock markets. The new policy called the State Administration of Foreign Exchange (SAFE) is aimed at widening the channels for the outflow of foreign currency and to promote the balance in international investors. The policy is also instituted to resolve excess liquidity and increasing foreign reserves.

The article reports on the difficulties facing the Chinese government in curbing excess liquidity. The massive foreign reserves of China is blamed for the excessive liquidity in the country. The growth of money supply and excessive capital in the commercial banking system also contribute to excessive liquidity. Chinese consumers decided to invest in real estate and in the stock market due to the low rate of return of bank savings.

The article reports on the decision of the China Banking Regulatory Commission (CBRC) to start accepting bank card applications from overseas banks. According to the author, foreign incorporated banks qualified for renminbi retail business are allowed to issue renminbi bank cards in accordance with CBRC requirements and related operational and technical standards. Foreign banks will enjoy similar treatment with Chinese banks.

The article reports on the emergence of the Binhai New Area in Tianjin, China as a favorable financial district. The popularity of the experimental area as a financial hub is evidenced by the 413 banking outlets located in the area based on statistic released by the China Banking Regulatory Commission. The financial hub extends financial options, promotes diversified operation of financial institutions and has launched foreign exchange reform.

The article assesses the plan of the Industrial and Commercial Bank of China (ICBC) to launch an initial public offering as approved by the China Banking Regulatory Commission. A comparison of the public offering of ICBC with the IPO of the China Construction Bank and the Bank of China (BOC) is discussed. The financial structure of the IPO of ICBC is described. The stock price of the BOC is assessed.

The article focuses on the new central bank personal credit information database that helps bank make informed decisions when approving credit cards or loans in China. The personal credit information database records clients' original credit information, and a credit report will be based on this information and will not involve any subjective judgment. The credit information database covers 340 million persons, among whom 35 million have a credit record.

The article reports on the coming launching of Bohai Bank, which is going to be China's first nationwide joint-stock commercial bank. The bank's shareholders signed the agreement in Beijing on September 6, and will be in operation early 2006. The author aforementioned that such launching will be a major test in China's banking reform.

Reports on the restructuring of the Postal Savings and Remittance Bureau (PSRB) of China into a commercial bank. Total assets of PSRB; Objectives of the restructuring of PSRB; Impact of the separation of the postal savings business from China Post on the profits of China's postal services.

Reports on the change of the name of Beijing City Commercial Bank to Bank of Beijing in Beijing, China. Preparation of expand operations on the Chinese mainland; Strategic effort to attract foreign investors; Negotiation of Hong Kong and Shanghai Banking Corp. and the International Finance Cooperation of the World Bank Group with BB for shares.

Reports on efforts by Hong Kong-based banks to enter the banking sector in mainland China. Hong Kong banks approved by the China Banking Regulatory Commission to operate branches in the mainland; Laws regulating the entry of banks into the mainland market; Requirements for banks setting up branches in China.

Assesses financial institutions in China. Decline on bank deposits; Flow of funds; Adjustment on credit quotas.

`Introduces the China UnionPay bankcard, which uses renminbi in Hong Kong, China. Key features; Capability to meet the international payment standards; Advantage features of the bankcard.

Explores the benefits of the emergence of foreign banks in China. Opening of Citibank Corp. to the individual foreign exchange business for Beijing residents; Services offered by foreign banks; Comparison between foreign banks and Chinese banks; China's opening of its entire banking industry to foreign banks in 2006.

Reports on the efforts of the expansion of the capital of the People's Bank of China through applying differentiated rates on required reserves in the country. Reduction on the rate of non-performing loans; Adoption of the new banking system; Control of haphazard credit expansion.

Focuses on the efforts of restructuring rural credit cooperatives (RCC) in China. History of RCC; Importance of rural financial reform to rural economic development; Policies offered by the government to ensure the success of financial reform.

Focuses on the efforts of major state-owned banks to intensify internal restructuring in China. Occurence of downsizing and layoffs; Issuance of intial public offerings; Modification of employment structure.

The article reports on the decision of Bank of China (UK) Ltd., a wholly-owned subsidiary of the Bank of China Ltd. (BOC) to acquire a 30-percent stake in Heritage Fund Management (HFM) SA of Switzerland. The acquisition costs around 60 million yuan. It relates the impact of the acquisition on the aim of BOC to expand its private banking services in other countries. It explores the problems that BOC may encounter in its foray into private banking.

The article focuses on the plan of the Industrial and Commercial Bank of China Ltd. (ICBC) to expand its international business to provide services for domestic companies that invest in overseas markets. A foreign authorized deposit-taking institution license was granted by the Australian Prudential Regulation Authority to ICBC. An overview of the performance of the overseas business of the bank is also presented.