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Consumer services refined to smooth cash flow

By Mao Lijun (China Daily)
Updated: 2008-07-04 14:00

Many more businesses in China today accept credit cards than just a few years ago. Cards are also easy to use at Capital International Airport in Beijing, select hotels and bank outlets to get Chinese currency.

The entire payment approach has been streamlined and regulations loosened to allow freer flow of funds as the nation prepares for its biggest global event, the 2008 Olympics.

By June 2008 the use of foreign cards became as convenient as local bank cards in areas near the Olympic Games.

Currency exchange is now available at many large shops, tourist sites and every bank outlet.

Changes in modes of payment and easier exchange seem to have happened quickly, but it has actually taken years of hard work by the Chinese government.

The Central Committee of the Communist Party of China and the State Council have viewed modernization of the payment environment as crucial to preparations for the 2008 Games.

In March 2006, Premier Wen Jiabao directed the People's Bank of China (PBOC) and nine ministries and commissions to help further develop consumer financial instruments.

A year later the group issued guidelines that specified goals and how to reach them.

Led by the PBOC operations office, the group then specified rules on credit card services, accounts, foreign currency exchange and cash.

Main achievements

Beijing's environment for credit card use has reached the level of major cities in developed countries. Businesses accepting credit cards number about 110,000 in the city, 129 percent more than at the end of 2006.

Some 152,000 points of sale and 9,400 ATM machines now accept credit cards. At Olympic venues, 94.3 percent of businesses take renminbi cards and 90.85 percent accommodate international credit cards, respectively 48 and 65 percent higher than a year ago.

Currency exchange services have also been improved. By the end of last month 2,000 bank outlets were qualified to offer exchange services. Among them, all 295 are located in areas near the Games.

As well, 330 hotels - 80 percent of the three-star or above hotels in Beijing - offer currency exchange. There are also 10 exchange outlets at Beijing Capital International Airport.

Bank account and cash services also have been improved. The State Administration of Foreign Exchange issued two temporary regulations to simplify foreign exchange at PBOC branches in Olympics areas.

The condition of currency in circulation has also been improved through issuance of 36.55 billion yuan new notes in the first half of the year, an increase of 211.2 percent over the same period last year. The portion of renminbi suitable for circulation is now 80.2 percent, 9 percent more than at the end of 2006.

Other improvements include priority counters for exchange services in Olympics areas and signs in English at ATMs and exchange centers.

Some banks will also have longer business hours to offer services and consulting.

The overall banking system has been augmented to stop illegal credit card use, counterfeit currencies and illegal foreign currency exchanges.