The first stage is from 1980 to 1993. At present, the overall strategy of China's banking opening to the outside world is to introduce foreign exchange funds through the entry of foreign banks, improve financial services for foreign-funded enterprises and create a better investment environment. 1980, the Export-Import Bank of Japan set up a representative office in Beijing; 198 1 Nanyang Commercial Bank set up a branch in Shenzhen, becoming the first business institution established by a foreign bank in China since the reform and opening up. Under the guidance of constantly adapting to the needs of economic and financial development and steadily promoting the opening-up policy of the banking industry, China's banking industry has expanded its opening-up field, gradually expanding from special economic zones to coastal cities and central cities. After 13 years of development, by the end of 1993, foreign banks had set up 76 business offices in China 13 cities to handle foreign exchange business for foreign-invested enterprises and foreign residents, with total assets reaching 8.9 billion US dollars.
The second stage is 1994 to 200 1 year. At this stage, China made a breakthrough in economic system reform, accelerated the pace of establishing a socialist market economic system, developed its foreign trade in an all-round way, absorbed a significant increase in foreign investment, and basically formed the overall pattern of opening up. In order to further raise the level of opening to the outside world and improve the investment environment, China has implemented relevant policies, improved foreign-related economic laws and regulations, and maintained a good momentum of foreign investment in China. With the rapid growth of foreign-funded enterprises in China and the development of international business of Chinese-funded enterprises, foreign-funded banking business has developed rapidly. On the basis of revising and perfecting the Regulations on the Administration of Foreign-funded Banks and Sino-foreign Joint Venture Banks in People's Republic of China (PRC) promulgated by 1985, China promulgated the first comprehensive regulation on foreign-funded banks in 1994, which stipulated the market access conditions and supervision standards for foreign-funded banks to operate in China. On the basis of the first stage of opening-up, the open area of the banking industry has been expanded from coastal cities and central cities to the whole country, and foreign banks can set up branches in all cities in China. In order to promote the further development of foreign banks, China promulgated the Interim Measures for the Administration of Pilot RMB Business of Foreign-funded Financial Institutions in Pudong, Shanghai on 1996, which further opened RMB business to foreign banks and accelerated the development of foreign banks in China. By the end of 1997, there were 175 foreign banks operating in China, an increase of 99 in four years, and the total assets more than tripled.
After the outbreak of the Asian financial crisis, the development of foreign banks in Asia tends to be cautious, and the institutional layout and business expansion in China also slowed down obviously, and some foreign banks withdrew from the China market. During the period from 1998 to 200 1, the number of foreign banks operating in China only increased by 15. In order to promote the development of foreign banks in China, China has adopted a series of policies and measures in time, and approved Shenzhen to become the second pilot city after Shanghai to allow foreign banks to operate RMB business. Allow foreign banks to join the national interbank lending market and solve the problem of the source of funds for their RMB business; Relax the geographical restrictions on RMB business of foreign banks, allow foreign banks in Shanghai to expand RMB business to Jiangsu and Zhejiang, and allow deep foreign banks to expand RMB business to Guangdong, Guangxi and Hunan. While the scale of foreign exchange loans is shrinking year by year, the above measures have promoted the development of RMB business of foreign banks.
The third stage is from 2002 to 2006. At this stage, great changes have taken place in the opening-up of China's banking industry. China joined the WTO on 20011211. During the five-year transition period, China earnestly fulfilled its promise and promoted the opening of the banking industry in an orderly manner. Stable opening expectation and timely policy adjustment have promoted the accelerated development of foreign banks. In the five years since China's accession to the WTO, the number of foreign-funded banks' operating institutions in China has increased from 190 to 3 12, with a net increase of 122 excluding factors such as institutional merger. The opening measures at this stage mainly include: