The China Banking Regulatory Commission (CBRC) issued a
circular on March 10 on matters concerning business undertaken
by foreign-invested banks, clarifying the exemption of overseas
banks from obtaining prior approval when underwriting treasury
bonds, investing in PRC financial institutions and helping
Chinese clients raise offshore capital.
But while the circular has clarified the exemption as it
pertains to the CBRC, offshore banks are required to seek out
the approval of the Ministry of Finance when underwriting
treasury bonds, which are regulated by different authorities
under different regimes.
"As the circular has only introduced high level guidance,
specific implementation rules and guidelines are expected to be
provided by various regulatory authorities," said
Tiecheng Yang, partner at Clifford Chance in Beijing.
A March 10 circular said that
directly foreign-owned and joint venture
banks are not required to seek prior approval from
the China Banking Regulatory Commission
(CBRC) before underwriting treasury bonds;The