The Hong Kong and Shanghai Banking Corporation Limited has recently announced the opening of its rural bank in Yong'an, Fujian Province — its third rural bank in the Chinese mainland.
According to the Fujian Banking Regulatory Commission the Fujian Yong'an rural bank — with a registered capital of CNY40 million — is a wholly-owned subsidiary of HSBC and the new rural bank will offer traditional banking services, including deposits and loans, clearing, acceptance and discount notes, bank cards, and deputy collection, to local individuals and enterprises.
Vincent Cheng, chairman of the Hong Kong and Shanghai Banking Corporation, said that the establishment of the Fujian Yong'an HSBC rural bank is an important step in HSBC's development in the rural banking sector of the Chinese mainland. The company hopes to bring international experience to China's rural areas and provide a sustainable rural financial model to promote the rural economic development of China.
Since China relaxed its control policy on rural banks in December 2006, foreign banks such as HSBC and Citibank have opened rural banks and credit companies in China's rural areas. In September 2008, HSBC launched its second rural bank in Dazu County, 80 kilometers west of Chongqing Municipality and its first China-based rural bank opened in Suizhou, Hubei Province in 2007. At present, the company has the approval from the Beijing Banking Regulatory Commission to open another rural bank in Beijing's Miyun County.