New measures spark BEA's Guangdong expansion

BEA will apply for “cross-location” sub-branches in Guangdong province under the new liberalisation measures of the Supplement VI to CEPA.

Under Supplement VI to the Mainland and Hong Kong Closer Economic Partnership Arrangement or CEPA, banks in Hong Kong that establish branch outlets in Guangdong may set up sub-branches within the province in any municipality without the need to first establish a branch in the same municipality, as previously required. With this new provision, the capital requirement for setting up a sub-branch in Guangdong will be significantly lowered.

“The new liberalisation measures of Supplement VI to the CEPA enable banks in Hong Kong to expeditiously expand their branch networks and contribute to the ongoing development of the financial industry in Guangdong province,” said Dr. David K.P. Li, Bank of East Asia’s Chairman & Chief Executive, and Chairman of BEA China.

Dr. Li added: “Since its implementation in 2004, the CEPA has effectively integrated the strengths of both the mainland and Hong Kong, and brought substantial economic benefits to both markets. We will continue to extend our reach under Supplement VI to the CEPA to ensure that a greater number of customers throughout the Pearl River Delta can enjoy our comprehensive range of quality banking and financial services.”

BEA China has three branches and 18 sub-branches in Guangdong province covering Shenzhen, Guangzhou, and Zhuhai.