Hong Kong Banks To Set Up In Shenzen Under CEPA Deal
by Mary Swire, Tax-News.com, Hong Kong
20 November 2003

Hong Kong business is to increase its foothold on the Chinese mainland after it was revealed that three small and mid-sized banks have obtained permission to locate offices in Shenzhen under the CEPA arrangement.

A government official has revealed that the three applications are pending with the China Banking Regulatory Commission and if approved, the banks can begin operating when the CEPA agreement becomes effective on January next year.

Under the provisions of CEPA, the asset requirement for Hong Kong banks to establish on the mainland is being reduced from a minimum of $20 billion to $6 billion, making it easier for many of the SAR’s banks to set up in China. According to Shenzhen’s Vice-Mayor Chen Yingchun, about ten banks could meet the new asset criteria.

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