Quarter Four 2007
Financial reforms are playing an important role in the transformation of China’s banking sector, developing a more competitive environment for domestic and foreign banks. The Shanghai branch of the China Banking Regulatory Commission (CBRC) announced that between January and June foreign banks achieved a pre-tax profit of RMB 1.484 billion, an increase of 21% since the beginning of the year. The increase was attributed to the banks’ renminbi retail business. With 16 foreign banks so far receiving approval to incorporate locally in China, the growing investment and presence of foreign banks in China’s banking sector is helping to bring new services and choices for corporate customers. In this quarter’s Cash Management article we look at the different types of RMB and foreign currency bank accounts available in China, the process of opening an account and the impact of new regulations on China’s banking system.
Chinese banks have also been investing abroad. China Development Bank has announced the purchase of a 3% stake in British bank Barclays. The rise in global mobility is creating an increasingly international recruitment market which is forcing companies to adapt their recruitment processes in order to secure qualified staff with an understanding of domestic and foreign markets. Human resource management is becoming an essential tool in recruiting the right treasury staff with internationally recognised qualifications and the ability to work within China’s cultural framework. Our article on recruiting treasury staff examines the process of recruiting treasury staff in international work environments and the factors to consider when recruiting treasury staff in China.
Focusing on banking, this quarter our Finance A-Z examines the role of gross and net settlement systems in the transfer of payments between banks. The article looks at the differences between real-time gross settlement systems (RTGS), where payments are moved electronically between banks as they occur, and net settlement systems, in which inter-bank payments are accumulated during the day with settlement taking place after a specified cut-off point.