Qianhai Economic Zone to Chose Banks to Pilot Loan Business
A ceremony will be held today at the Shenzhen Qianhai economic zone that will announce the list of banks that will be signed and selected to pilot the cross yuan business allowing companies in the zone to borrow from banks in Hong Kong.
A spokesperson for the Qianhai Shenzhen Hong Kong Modern Service Industry Cooperation Zone have also confirmed the first batch of banks that will be participating in the pilot system will be named in today’s ceremony that is not open to the media. Banks with businesses in Hong Kong will have an advantage in the business. Several insiders said that the Shenzhen branch of the Hong Kong Hang Seng Bank will be on the list as well as Hong Kong Wing Lung Bank which was acquired by the Shenzhen based China Merchants Bank along with State banks such as China Construction bank.
The city government originally planned to select three or five banks to pilot the system, but a lot of banks submitted applications that were interested and eligible for the business. There will be ten banks to be chosen to pilot the loan business that will allow companies in Qianhai to borrow yuan from Hong Kong banks that have interest rates set independently.