The head office of a commercial bank shall allocate working capital to its branches in accordance with the provisions of the Commercial Bank Law, and the sum of the working capital allocated to the branches shall not exceed 60% of the total capital of the head office of a commercial bank.

According to the Reply of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Paying Stamp Duty on Working Capital of Branches of Foreign Banks (Guo [2002] 104), the overseas head office of a branch established by a foreign bank in China needs to allocate a specified amount of "working capital", and the branch does not set up "paid-in capital" and "capital reserve" accounts. The above-mentioned branches of foreign banks shall pay stamp duty on the "working capital" allocated by their overseas head offices in accordance with the Provisional Regulations on Stamp Duty in People's Republic of China (PRC), and the branches of foreign banks shall record the "working capital" account books allocated by their overseas head offices, and apply stamp stamps according to the amount of book funds allocated by them.