TNAG-1623-FCO40-2237-Relations-between-Hong-Kong-and-China-1987 — Page 202

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has been opened as a conduit for aid from the World Bank

and the Asian Development Bank.

8.

The Bank of China (BOC) has been granted greater operational flexibility and responsibility in financing

foreign trade and supporting the export sector. But it is now rivalled by the China International Trust and

Investment Corporation (CITIC) which was set up in July

1979. This corporation is a state-owned enterprise operating under the direct leadership of the State Council and is authorised to absorb foreign capital, bring in

advanced technology and import up-to-date equipment to speed up China's modernization. Another rival of the BOC

was set up in 1986 the re-vitalized Communications Bank of China (CBOC). It has been given permission to deal in

foreign currencies, engage in support services for foreign

trade, and handle both long-term and short term loans.

9.

The following chart illustrates the broad

structure of China's financial system and institutions:

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