The Chinese central bank has indicated that it has started to review an application from an American Express subsidiary to do business in China.
On 8 January the People’s Bank of China (PBOC) released its “Inventory of the Central Bank’s 2019 Financial Sector Foreign Openings” (盘点央行的2019|金融业对外开放), revealing that it had started to review the application from an American Express joint-venture to commence business as a bank card clearing entity.
On 9 November 2018 PBOC publicly announced that it had examined and approved the bank card clearing entity preparatory application submitted by Liantong Company (连通公司) – American Express’s Hangzhou-based Chinese joint-venture.
American Express Travel Related Service holds a 49% equity stake in Liantong Company, while American Express Marketing Development holds another 1% of equity.
Lianlian Digital Technology Co., Ltd. (连连数字科技有限公司) holds a 50% stake in Liantong Company, whose total registered capital is one billion yuan.