Financial services in the People's Republic of China
Encyclopedia
Financial services
in the People's Republic of China
refers to the services provided in PRC by the finance
industry: bank
s, investment banks, insurance
companies, credit card
companies, consumer finance companies, government sponsored enterprises, and stock broker
ages.
(CSRC) has required since 2004 that newly-appointed CEOs, deputy CEOs, and heads of supervisory boards at locally incorporated securities firms all pass a Chinese language ability examination in order to take up their posts. In 2007, for example, Goldman Sachs
partner Richard Ong
was denied permission to take the job of CEO at Beijing joint venture Goldman Sachs Gao Hua Securities Co. because of his weak Chinese language abilities.
corresponding to an interbank network
such as Cirrus
or PLUS, but foreign residents may not. Foreign residents in PRC, however, may use such interbank networks at ATMs in PRC through ATM cards procured in foreign countries.
Interbank ATMs are common throughout the country, especially in densely-populated urban areas such as Beijing
.
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
in the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
refers to the services provided in PRC by the finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
industry: bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s, investment banks, insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
companies, credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
companies, consumer finance companies, government sponsored enterprises, and stock broker
Stock broker
A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors...
ages.
Securities trading
The China Securities Regulatory CommissionChina Securities Regulatory Commission
The China Securities Regulatory Commission is an institution of the State Council of the People's Republic of China , with ministry-level rank...
(CSRC) has required since 2004 that newly-appointed CEOs, deputy CEOs, and heads of supervisory boards at locally incorporated securities firms all pass a Chinese language ability examination in order to take up their posts. In 2007, for example, Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
partner Richard Ong
Richard Ong
Richard Ong is the founder and was the chief executive officer of the Hopu Fund, a China-based private equity fund. Hopu is now the largest private equity fund in China.-Early career:...
was denied permission to take the job of CEO at Beijing joint venture Goldman Sachs Gao Hua Securities Co. because of his weak Chinese language abilities.
Electronic banking
In 1994, China started the "Golden Card Project," enabling cards issued by banks to be used all over the country through a network. The establishment of the China Association of Banks rapidly promoted the inter-bank card network and by the end of 2004, the inter-region-inter-bank network had reached 600 cities, including all prefecture-level cities and more than 300 economically developed county-level cities.International ATMs
PRC citizens may apply for an international ATM cardATM card
An ATM card is a card issued by a bank, credit union or building society that can be used at an ATM for deposits, withdrawals, account information, and other types of transactions, often through interbank networks.Some ATM cards can also be used:* at a branch, as identification for in-person...
corresponding to an interbank network
Interbank network
An interbank network, also known as an ATM consortium or ATM network, is a computer network that connects the ATMs of different banks and permits these ATMs to interact with the ATM cards of non-native banks....
such as Cirrus
Cirrus (interbank network)
Cirrus is a worldwide interbank network operated by MasterCard Worldwide, and was founded in 1986. It links MasterCard, Maestro, Diners Club credit, debit and prepaid cards to a network of over 1,000,000 ATMs in 93 countries....
or PLUS, but foreign residents may not. Foreign residents in PRC, however, may use such interbank networks at ATMs in PRC through ATM cards procured in foreign countries.
Interbank ATMs are common throughout the country, especially in densely-populated urban areas such as Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
.
See also
- China Venture Capital AssociationChina Venture Capital AssociationChina Venture Capital Association is a Venture Capital industry trade group that itself says "promotes the interest and the development of venture capital and private equity industry in the Greater China Region."...
- Economy of the People's Republic of ChinaEconomy of the People's Republic of ChinaThe People's Republic of China ranks since 2010 as the world's second largest economy after the United States. It has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of...
- History of banking in ChinaHistory of banking in ChinaThe history of banking in China includes the business of dealing with money and credit transactions in China.- Early Chinese banks :Chinese financial institutions were conducting all major banking functions, including the acceptance of deposits, the making of loans, issuing notes, money exchange,...
- Chinese financial systemChinese financial systemChina's financial system is highly regulated and has recently begun to expand rapidly as monetary policy becomes integral to its overall economic policy...