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BIZCHINA> Banking
Looser currency controls on cards
By Xu Binglan and Li Fangchao (China Daily)
Updated: 2007-03-09 09:21

Responding to questions about the size of foreign exchange assets to be managed by the proposed State Foreign Exchange Investment Company, Hu said: "Really, it has not been decided."

Looser currency controls on cardsWu Xiaoling, vice-governor of the central People'sBank of China, said earlier this month that a new company would be established to manage the nation's foreign exchange reserves.

Former SAFE Director Guo Shuqing said yesterday that the new company would be integrated in the Central Huijin Investment Co, the investment arm of the central bank, which has already used part of the foreign exchange reserves to recapitalize State-owned financial institutions.

However, Guo, now the chairman ofChina Construction Bank(CCB), refused to make further comments on the issue. He was also speaking to reporters, but on a different occasion.

CCB's overseas plan

Guo said his bank had plans to open branches in the United States, Europe, Australia, the Middle East and Southeast Asia.Looser currency controls on cards

But he said he had found it difficult to open branches in developed countries because they have many barriers and restrictions for foreign players.

"Their banking industry should be more open," he said.

CCB now has six overseas branches, in the countries of Singapore, Tokyo, Seoul, Johannesberg, Frankfurt as well as theHong KongAdministrative region.

(China Daily 03/09/2007 page5)


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