CHINA SETS UP NEW FINANCIAL INSTITUTION
China has set up a new nationwide
financial institution which will handle foreign exchange and
renminbi deposits and loans, leasing, investment, guarantees
and bond issues, the People's Daily overseas edition said.
    The new institution, <Everbright Financial Co>, is a unit
of state-owned <Everbright Holding Co> of Peking, which has had
a turnover of 500 mln dlrs since it was set up three years ago
under the chairmanship of Wang Guangying, the paper said.
    A Western banker said the creation of the new firm is a
further step in making China's banking more competitive and
breaking down the monopolies that existed previously.
    He said the scope of the new firm will be similar to that
of state-owned <China International Trust and Investment Corp>
(CITIC), which has been active in raising foreign funds and
bringing foreign investment and technology to China.
    CITIC is better known inside China, because most of
Everbright's activities up to now have been abroad, the banker
said. "The heads of both enjoy excellent relations with China's
top leaders," he added.
    The paper said Chen Muhua, president of the People's Bank
of China, and Vice Premier Yao Yilin attended the firm's
founding ceremony, an indication of highest-level approval.
    The paper quoted Chen as saying at the ceremony that in
1987 China will continue to deepen its economic reforms by such
means as further reforming its financial system, enlivening
currency markets and speeding up the circulation of funds.
 REUTER
