HKMA Chief Executive meets CBRC Chairman

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.