China corporate bank account

China banking systems and regulationsBecause of China’s booming economy and status of a World factory, having a quality corporate bank account in the country is an important asset for foreign investors. Healy Consultants Group PLC and our dedicated Chinese banking team specialize in corporate bank account setup project management, without personal travel involvement.

China banking system

  • RMB has become the second most used currency for trade finance. RMB clearing remains strictly regulated by the State and mostly done by the Industrial and Commercial Bank of China. Consequently, this bank is a preferred choice of Healy Consultant’s Clients operating in import/export business;
  • After China’s inclusion in the World Trade Organization on the 11th of December, 2001, transactions with foreign currency became available to local corporations and individuals;
  • In 2015, the growth in total assets and liabilities was modest in comparison to previous years, climbing at a slower pace of 2.1% to RMB 155.8 trillion. This has fueled concerns that the Chinese banking industry could be on the verge of a major crisis, originating from its unregulated shadow sector;
  • Recent announcement of incoming VAT reform in China is expected to severely impact the banking sector in several ways, including: i) Chinese banks will suffer greater tax burden and ii) the implementation of new system is expected to incur greater operational complexity.

Chinese banks

  • The Chinese bank system is gradually catching up to Western banks despite largely remaining in Government hands. Currently the “big four” banks in China: i) Bank of China ii) Industrial and Commercial Bank of China iii) Agricultural bank of China and iv) China Construction Bank are all state-owned;
  • Apart from state-owned banks, there are two other types of banks in China including: i) Policy banks – specialized banks that focus on economic and trade development, mostly in rural areas, and ii) City commercial banks – this bank segment deals with urban development and SME business;
  • Some of the more renowned international banks operating in China include Citibank, DBS bank and OCBC. These banks offer internationally recognized sophisticated corporate facilities, checking and saving accounts, prepaid, debit and credit cards, fixed term deposit and asset management services;
  • Chinese banks do not operate efficiently and transparently in comparison to its global competitors. As a result, China is negatively ranked 78th in terms of Soundness of bank, according to the World Economic Forum.

Healy Consultants services

  • Opening a new corporate bank account in China is becoming more accessible to foreigners. Expected average timelines for corporate bank account opening include i) 4 weeks to receive corporate bank account numbers and ii) 3 weeks to activate online banking facility;
  • To obtain confirmation of interest from a Chinese bank, our Client requires to prepare: i) a set of legalized due diligence documents ii) a set of translated corporate documents iii) in most cases a personal meeting is required in order to pre-approve a corporate bank account for a foreign bank signatory;
  • Healy Consultants can open a local business bank account for a foreign company. Many of our Clients use a local business bank account to receive payments and pay suppliers without the need to register a local company;
  • Alternative corporate bank account opening strategy to reach Chinese Clients include opening a new business account in a Hong Kong bank. Read more details on how to obtain quality Hong Kong corporate bank account within a month;
  • View all Asian banking options for a foreign company (without travel).

Trade finance

  • Nowadays obtaining trade finance in China has never been easier due to the Government’s “one belt one road” policy. The sector is gradually shifting from basic commodities financing to more high tech products and labor contracting services;
  • According to the World Bank, China is gradually climbing ranks in the field of “getting credit” rank – for one year only, the country reached 62nd place out of in the Doing business report for 2017.
  • Healy Consultants will help our Clients to obtain corporate finance in the form of a loan, overdraft or simply preferential credit terms.

Foreign exchange controls

  • People’s bank of China imposes very strict currency exchange controls on local or foreign investors. Positively, recent trends show gradual liberalization on foreign exchange markets and currency transactions;
  • Non-resident shareholders cannot freely receive dividends from local Chinese companies;
  • Non-resident shareholders cannot freely repatriate sales proceeds of their stake in a China resident company.

Engagement process

Healy Consultants Group PLC puts in place an detailed corporate bank account opening process to ensure our Client’s banking facilities are activated timely and efficiently.

Global corporate bank account opening process.

Contact us

For additional information on our banking services in China, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
HSBC China standard chartered bank China citibank China