Important Measures in August 2006
PRESS RELEASE Release Date: September 12 , 2006
Important Measures in August 2006
In line with the policy of promoting the liberalization, internationalization, and development of the foreign exchange market, the Central Bank of China (CBC) announced the following measures in August 2006:
1. Allowed the following authorized banks to conduct foreign exchange derivatives business by notifying the CBC after the commencement of business without CBC's objection:
(1) Bank SinoPac: FCY structured products composed of FCY Deposits linked with FCY IRO, FCY Interest Rate Swaptions and FCY Equity Options.
(2) China Development Industrial Bank: Structured products composed of FCY Deposits linked with FCY Options.
2. Approved SinoPac Securities Ltd. and other 18 companies as single master agents for offshore funds in offering and selling offshore funds in Taiwan.
3. Approved Deutsche Bank to underwrite bonds of international board.
4. Approved Cathay Securities Investment Trust to handle public offer or private placement of funds in foreign currencies.
5. Approved Union Securities Investment Trust to handle private placement of offshore funds on behalf of clients.
6.Authorized 3 branches of 2 banking enterprises to operate the full range of foreign exchange business. In addition, 12 branches of 2 banking enterprises were approved to sell/buy foreign currency banknotes and traveler’s checks. As of the end of August 2006, there were 1,143 authorized foreign exchange banks, including 1,079 domestic banks and 64 foreign banks.