The Chief Executive of the Hong Kong Monetary Authority (HKMA), Mr Norman Chan, met the Chairman of China Banking Regulatory Commission (CBRC), Mr Liu Ming-kang today (Friday), during Chairman Liu's visit to Hong Kong as a guest speaker of the Hong Kong Association of Banks Distinguished Speaker Luncheon.
The CBRC and the HKMA agreed to further increase co-operation on promoting integrated development of cross-border banking and effective supervision of such services.
Chairman Liu and Mr Chan also exchanged views on the latest cross-border banking developments under the framework of the Closer Economic Partnership Arrangement (CEPA). In respect of the Sixth Supplement to CEPA* regarding the new arrangement for Hong Kong banks to open sub-branches in Guangdong Province, it was noted that the CBRC has completed preparations for processing Hong Kong banks' applications.
"The HKMA welcomes the development, which provides a much more favourable environment for Hong Kong banks to expand their operations in Guangdong Province," Mr Chan said.
* Note: The Sixth Supplement to CEPA took effect from 1 October 2009. Under the new provision, branches of Hong Kong banks and their Mainland subsidiaries in Guangdong Province (including Shenzhen City) may apply to establish "cross-location sub-branches" within the Province, with reference to the relevant rules on the Mainland for establishing sub-branches. This means that after Hong Kong banks have established operations in Guangdong Province, further opening of sub-branches in the Province can be exempted from the general requirement on the Mainland that sub-branches may be opened only in the locations where branches have been established.
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Hong Kong Monetary Authority
9 October 2009
Mr Norman Chan, the Chief Executive of the Hong Kong Monetary Authority, greets Mr Liu Ming-kang, the Chairman of China Banking Regulatory Commission, at the Hong Kong Monetary Authority office.