China to consider law to protect foreign central bank assets - report
Wednesday, August 24, 2005 2:08:14 AM
afxpress.com
BEIJING (AFX) - China's top legislature is considering exempting foreign central banks' assets in China from judicial enforcement, the China Daily reported
The report said the new legislation will enshrine in law what is already practised, protecting foreign central banks' assets from being seized by the courts
A draft of the bill has been endorsed by the State Council and is now awaiting approval from the Standing Committee of the 10th National People's Congress, which convened its 17th session yesterday in Beijing, the paper said
According to the four-article draft bill, foreign central banks' assets include cash, bank deposits, securities, foreign exchange reserves, gold reserves and other properties. The report said that some foreign central banks -- most of which operate out of Hong Kong -- had become concerned about the lack of legal protection of their assets after the island returned to the mainland, invalidating earlier safeguards. However, the judicial exemption will only apply to central banks and financial institutions of countries that offer reciprocal asset exemption to China's central bank and financial institutions in Hong Kong and Macau, the paper added |
