|
China Financial Transactions and Investment
Foreign exchange and reserves were controlled in the mid-1980s
by the State Administration of Exchange Control under the People's
Bank of China, the central bank. Foreign exchange allocations to
banks, ministries, and enterprises were all approved by the State
Administration of Exchange Control. The Bank of China, the foreign
exchange arm of the People's Bank of China, lost its monopoly on
all foreign exchange transactions in 1984 when the Agricultural
Bank, People's Construction Bank, China Industrial and Commercial
Bank, and China International Trust and Investment Corporation
(CITIC) were permitted to deal in foreign currency. The Bank of
China remained China's principal foreign exchange bank and provided
loans for production and commercial transactions related to
exports, set up branches overseas, maintained correspondent
relations with foreign banks, and did research on international
monetary trends. The Bank of China also was active in international
financial markets through such activities as loan syndication and
issuing of foreign bonds. CITIC, formed in 1979 to facilitate
foreign investment in China, also borrowed and lent internationally
and issued foreign bonds in addition to encouraging and
participating in joint ventures, importing foreign technology and
equipment, and making overseas investments. In 1986 CITIC was
renamed CITIC Group and shifted its emphasis to power,
metallurgical, and raw materials industries, which had trouble
attracting investments. In late 1986 the CITIC Group had set up 47
joint ventures, invested in 114 domestic companies, and issued
US$550 million in foreign bonds. The China Investment Bank was
established in 1981 as a channel for medium- and long-term loans
from international financial institutions such as the World Bank.
Data as of July 1987
|
