Bank of China (Hong Kong) Issues Yuan Credit
Card
The Bank of China (Hong Kong) has issued the first yuan
(RMB) combined charge/credit card in Hong Kong. The new
card is expected is expected to be popular with Hong Kong
travelers who frequently travel to China, as it will be
accepted at more than 400,000 retail outlets in China,
and will also allow them to deposit and withdraw yuan
at more than 50,000 ATMs in China.
The credit card function will allow users to charge a
maximum of 100,000 yuan, and will charge 18 percent interest.
Yuan withdrawals can be made from 220 ATMs in Hong Kong
with no charge; yuan withdrawals made in mainland China
will carry a 50 yuan processing fee per transaction.
Over the past year, the Chinese government has issued
an array of economic measures of stimulate the Hong Kong
economy, which reached its lowest ebb during the first
half of 2003. Since then, the Chinese government has introduced
the Closer Economic Partnership Agreement (CEPA),
a package of measures which provide preferential treatment
to Hong Kong-based businesses when investing in China.
Effectively, the measures turn Hong Kong into a backdoor
into China for business and investment before WTO measures
are introduced and implemented in China. The measures
have been particularly welcome by the banking
industry because Hong Kong is largely free of investment
and currency controls, while China is still restricted.
Earlier this year, Hong Kong banks started taking yuan
deposits. The yuan charge/credit card is the flip
side of the coin, and represents a further blurring of
the division between Hong Kong and China currency controls.
The Bank
of China (Hong Kong) is one of the major banks in
Hong Kong, and is also one the currency-issuing authorities
of Hong Kong dollars.
Before you go, did you like this article?
If so, you can receive a free email newsletter version
each weekday. Sign up using the China Business Express
form on this page.
