ANZ China
Mainland China
FAQ's
 FAQ's

Consumer Banking

Q. Can ANZ open personal accounts in China?
Q. Can individuals access funds in ANZ Australia or New Zealand bank accounts from an ANZ China Branch?
Q. Do individuals need to bank with local Chinese banks
Q. Can individuals convert their RMB salary into foreign currency and make an overseas transfer?
Q. How long does it take to make, or receive an overseas transfer to or from China?
Q. How much RMB or FX cash can be physically carried out of China?
Q. Is there a departure tax?
Q. Can ANZ make domestic payments in foreign currency and RMB?
Q. Is interest paid on bank accounts in China?
Q. What is the advantage for an individual banking with ANZ in China ?
Q. Does ANZ lend for the purpose of buying a property in Australia or New Zealand?
Q. Does ANZ lend to buy a property in China?

Corporate Banking and Commodity &Trade Finance

Q. Can companies open bank accounts with ANZ in China?
Q. Can accounts be opened if the company is not registered in China?
Q. What are the types of companies that can be registered in China, and how are they established?
Q. What type of bank accounts must a company operate in China?
Q. What is the interest rate on company accounts in China?
Q. Can a foreign company send profits back overseas?
Q. How are profits sent overseas?
Q. How does a company fund itself in China?
Q. What interest rates are charged on RMB borrowings in China?
Q. What sort of trade finance products are offered by ANZ?

Markets

Q. How is the RMB exchange rate determined?
Q. Should companies hedge foreign exchange and RMB?
Q. Is ANZ permitted to conduct RMB forwards?
Q. What kind of transactions can be hedged by RMB forwards?

Q. Can ANZ open personal accounts in China?

A.Yes, for foreigners ANZ can open foreign currency (multi-currency) accounts and RMB accounts in both Shanghai and Beijing. For Chinese nationals, current regulation in China restricts foreign banks to opening for

You simply need to visit an ANZ Shanghai or Beijing and provide ANZ with your passport and complete the documentation contained at: Consumer Account Opening Pack

Top

Q.Can individuals access funds in ANZ Australia or New Zealand bank accounts from an ANZ China Branch?

A.No.You cannot access ANZ Australia or New Zealand accounts from ANZ's China Branches.Conversely, ANZ China accounts can not be accessed from ANZ Australia or New Zealand.

You can access Australia or New Zealand accounts via the ATM network in China. There are ATM’s across China, and almost all of them accept international cards.

Note that in China there is a cash limit of RMB4,500 on the amount that can be withdrawn from a single account in a 24 hour period.

Top

Q. Do individuals need to bank with local Chinese banks

A.No, there are no regulations or requirements for individuals to open accounts with local banks. ANZ China can provide a complete consumer banking solution.

Note however that current regulations preclude foreign banks from providing real debit or credit card .It is therefore recommended that individuals open a local bank account for the purpose of getting a local debit or credit card and accessing the local ATM network. Note however, that Chinese debit cards cannot be used overseas.

ANZ has service agreements with a number of local banks and can facilitate the account opening and card issuance procedure, without the need to visit the local bank.

Top

Q. Can individuals convert their RMB salary into foreign currency and make an overseas transfer?

A.Yes, RMB can be converted into foreign currency up to the total salary, less tax.An original tax receipt must be provided before the conversion and payment can be made.

Note that in China cash is treated differently to funds transferred electronically.

Note that for individuals, if funds are transferred into China they can be freely

Top

Q.How long does it take to make, or receive an overseas transfer to or from China?

A.From the day of making a transfer, normally it will take two working days for funds to be received either overseas or into your (ANZ) China bank account. If funds are not received within 3 working days, inquiries should be made firstly at the receiving bank, and then at the sending bank.

Top

Q. How much RMB or FX cash can be physically carried out of China?

A. RMB20,000 cash can be carried out of China. Note however that very few countries accept RMB cash for conversion Up to USD5,000 equivalent can be carried out of China in foreign currency (cash). Amounts greater than this will require a “Permit for Taking Foreign Currency Out of Customs Territory”

Top

Q. Is there a departure tax?

A. Departure tax is now included in your travel ticket(s).

Top

Q. Can ANZ make domestic payments in foreign currency and RMB?

A.ANZ China is part of the domestic clearing system and can make domestic payments electronically either within the day, or overnight.

Note that foreign currency cannot be transferred domestically without first converting these funds to RMB.

Note that companies cannot make transfers to individuals unless that individual is an employee of that company.

The cut off time for local payments clearing is 4:30PM

Top

Q. Is interest paid on bank accounts in China?

A.Interest is paid on foreign currency accounts at the prevailing international interest rates applicable to the currency of the account.

RMB interest rates are regulated and fixed by the People's Bank of China (PBOC).

Dual Currency Deposits are an option for both individuals and companies to enhance the yield on their foreign currency deposits.

Top

Q. What is the advantage for an individual banking with ANZ in China ?

A.At ANZ we will do more than just open a bank account for you and make payments. Our expatriates and local staff have all experienced banking and living in China from both a personal and professional perspective and can offer some useful and advice, in either Chinese or English.

Top

Q. Does ANZ lend for the purpose of buying a property in Australia or New Zealand?

A. ANZ is the Australian “Home Loan Lender of the Year” in Australia.ANZ offers a simple yet competitive offshore finance package to help you purchase or refinance property in Australia or New Zealand.

ANZ can lend in a range of currencies to match your income and suit your preferences including USD, AUD and NZD.

Top

Q.Does ANZ lend to buy a property in China?

A. No, ANZ does not provide the mortgage loan against Chinese property at present.However, if you have equity in an existing property in Australia or New Zealand, we can refinance and offer funding to buy a property in China.

Top

Q.Can companies open bank accounts with ANZ in China?

A.Absolutely. ANZ can open both foreign currency (multi-currency) accounts and RMB accounts for both foreign companies and local Chinese companies in China including State Owned Enterprises (SOEs).

Top

Q.Can accounts be opened if the company is not registered in China?

A. A company must be a registered legal entity in China before foreign or local banks can open bank accounts for that company.

ANZ China can however open offshore accounts for companies registered offshore. The account can be operated from either within China or overseas and foreign currency can move freely to and from the account without Chinese regulatory restriction. Note that an offshore account cannot be denominated in RMB.

Top

Q.What are the types of companies that can be registered in China, and how are they established?

A.There are 4 main types of companies in China:

  1. Local Chinese Company:registered with domestically sourced capital, and with no overseas ownership.
  2. A Wholly Foreign Owned Enterprise (WFOE): is a wholly owned foreign company subsidiary registered with 100% foreign capital. A WFOE can trade domestically and receive RMB revenue.
  3. Joint Venture (JV): between a foreign company and a local Chinese company (which can also be a state owned enterprise (SOE).
  4. Representative Office (Rep Office):can not trade domestically and has no paid in capital. A Rep Office can not receive RMB revenue and acts as a cost centre and sales or management office.

Today, there are only very few industries that require foreign investors and foreign companies in China to establish a joint venture Most foreign direct investment (FDI) into China is channeled into WFOEs.

ANZ can recommend a number of lawyers and consultants that can facilitate the establishment of a company in China, and work with these professionals to ensure the financial aspects of registration are simple and efficient.

Top

Q.What type of bank accounts must a company operate in China?

A. A Rep Office simply has foreign currency and RMB expense accounts.

A Joint Venture and WFOE must have certain bank accounts:

  1. Capital Account - into which paid up capital must be deposited and then registered.
  2. Basic Account - from which RMB cash and staff salary can be withdrawn. Only a single Basic Account can be opened, and this is usually opened in the physical location of the office with a local Chinese bank.
  3. Ordinary Accounts - from which neither RMB cash nor staff salary can be withdrawn. It is generally the account in which surplus cash balances are held, and from which payments are made for rent and other trade related business. Multiple Ordinary Accounts can be opened in any bank in any region/city.

Basic Accounts and Ordinary Accounts cannot be opened with the same bank, hence the need to open local bank accounts.

Top

Q.What is the interest rate on company accounts in China?

A.As for individual accounts, interest on foreign currency accounts are established in the international markets. Again, Dual Currency Deposits are an alternative to earning and enhanced yield on deposits.

Interest on RMB accounts is regulated and fixed by the PBOC.

Top

Q.Can a foreign company send profits back overseas?

A. Both WFOEs and JVs can remit profits overseas in the form of dividends The amount of the dividend paid can be as high as 90% of the company’s after tax profit.

Top

Q.How are profits sent overseas?

A.Upon the presentation of the following documents to ANZ, either a JV or a WFOE can remit profits overseas:

  1. Evidence of Paid up Capital (all requisite capital must be paid into China before profits can be remitted overseas).
  2. Audited Financial Statements
  3. Board Resolution to Pay Dividends
  4. Tax Receipts (providing evidence that the requisite tax has been paid on the profits)
  5. ANZ can process the remittance of profits without the need for regulatory approval.
  6. Note, as for individuals, ANZ is part of the domestic Chinese clearing system and make and receive domestic payments.

Top

Q.How does a company fund itself in China?

A. A Rep Office can only source funding from it’s parent company. Any funding can only be used to cover the expenses of the Rep Office.

A JV or WFOE can source funding via paid up capital, but can also borrow from ANZ, and from the parent entity.

ANZ can provide both working capital and term loans in both RMB and foreign currency to match the cash flows of the company (subject to credit approval).

Direct domestic inter-company lending is prohibited in China, ANZ can however facilitate agency lending arrangements between related entities in China, and between independent third parties with specific funding requirements.

Top

Q.What interest rates are charged on RMB borrowings in China?

A. RMB lending rates are also regulated and fixed by the PBOC.Banks can lend as low as 10% below the PBOC middle rate, and at any margin above this rate.

Top

Q.What sort of trade finance products are offered by ANZ?

A. ANZ can provide a complete range of trade finance solutions covering traditional trade finance products such as Letters of Credit, Documentary Collections and Trade Loans etc. and more structured trade finance products such as Back to Back and Front to Back Letters of Credit, Offshore Receivables Discounting, Payment Guarantees and Buyer or Supplier Finance etc.For more details, please contact our ANZ Commodity & Trade Finance team.

ANZ is one of the strongest trade finance banks in Asia, and particularly in China, ranking the top 5 amongst the foreign banks in China.

Top

Q.How is the RMB exchange rate determined?

A.The RMB exchange rate is set by the PBOC against the USD on a daily basis, based on a basket of currencies from China's major trading partners.

Top

Q.Should companies hedge foreign exchange and RMB?

A.With the recent changes to the RMB regime in China, benchmarking the currency against a basket of currencies, rather than pegging against the USD, there is a greater need for companies to hedge against adverse movements in the RMB.

Top

Q.Is ANZ permitted to conduct RMB forwards?

A. Yes.ANZ is one of the first foreign banks to obtain approval from the Chinese regulators conduct RMB forwards.

Top

Q.What kind of transactions can be hedged by RMB forwards?

A.RMB forward hedging in connection with the following areas are allowed:

  1. All current account item transactions
    Trade import payment/export receipt, Non-trade (e.g. royalty, dividend) incoming and outgoing;
  2. Capital account items related to:
    Repayment of bank loans
    Repayment of overseas foreign currency loans/share holder loans already registered with SAFE
    Hedging the registered foreign currency income by direct investment overseas
    Hedging the registered capital injection
    Hedging the foreign income from overseas IPO

Top

Disclaimer

To the extent permitted by law, ANZ accepts no liability for any loss or damage (including indirect, special or consequential loss or damage) to any person arising from the use of or reliance upon information contained, in or accessed through, this web-site. If such disclaimer is prohibited by law, the Bank limits its liability (to the extent permitted by law) to the resupply of such information.