China’s central bank said on Tuesday that it has approved an application by Mastercard’s Chinese joint venture to conduct bank card clearing business in the country.
The joint venture, with a registered capital of one billion yuan ($143 million), was 51 per cent owned by Mastercard, with the remaining stake held by Chinese company NetsUnion Clearing Corporation, according to the National Enterprise Credit Information Publicity System.
The joint venture needs to complete preparation work within a year, the People’s Bank of China said in a statement on Tuesday.
The decision, jointly made by the People’s Bank of China (PBoC) and China Banking and Insurance Regulatory Commission, represents a concrete step that China has taken to further open up its financial industry, the central bank said on its website.
As part of the country’s efforts to further open up its financial sector, the opening of the bank card market will help promote the internationalisation of the country’s payment and settlement services, and facilitate all industry players, the PBoC said.
The PBoC said it will continue to push forward the opening of the country’s bank card market while improving the regulatory system to maintain financial stability.
CHINA DAILY/ASIA NEWS NETWORK