China Banking Regulatory Commission
The China Banking Regulatory Commission announced on 24 December 2006 its approval for foreign banks to start their preparatory work for setting up local incorporations in mainland China. These foreign banks can launch the RMB retail business of below RMB1 million for Chinese domestic citizens after the inspection and confirmation by the relevant banking regulatory administration authorities. The Hongkong and Shanghai Banking Corporation was one of nine foreign banks to have applied for the incorporation. On 1 April 2007, the mainland China offices of The Hongkong and Shanghai Banking Corporation transferred to its subsidiary HSBC Bank (China), and it started operations on 2 April. The registered capital and paid-up capital of HSBC Bank (China) is equivalent to RMB8 billion. However, The Hongkong and Shanghai Banking Corporation still has a branch in Shanghai, which conducts foreign currency wholesale banking business.