ABSTRACT
This chapter is divided into 3 separate topics. The first topic is banking, the contents of which include the policies of the control of currency, and the functions of the Banks in China, especially those of the Bank of China. Since the publication of the First Edition of this book, two important legislations have been promulgated, namely: 1. Interim Banking Control Regulations of the People's Republic of China, and; 2. Provisional Regulations on Administrative over Financial and Trust Investment Organs.
Readers may refer to the contents of this Chapter for details. As regards Foreign Exchange, it is always a serious problem to foreign investors and traders. It is due to the fact that China has a very strict foreign exchange control. Since 1983, China has announced few measures to ease the problem, effect of which is not at all sigificance, especially when China promulgated the "Provisional Regulations on Violation of Exchange Control of the PRC" on April 5, 1985. In view of poor response of foreign investors' in expanding their investment in China, the Chinese Government has announced New 10 Articles Scheme to solve Foreign Investor's Foreign Exchange Crunch (please refer to the Appendix of this topic for details). These new measures have, to certain extent, improved the situation since early 1987.
