Chinese Licence In 36 Steps For NZ Finance Broker

Release - 13 August 2008

Chinese Licence In 36 Steps For NZ Finance Broker

It has taken a New Zealand finance business 36 steps to gain a licence to trade in China, but clearing the red tape will be worth the effort, says David Weusten of Financial Service Providers.

Mr Weusten, who runs the Christchurch-based finance broking firm, now also heads Qinghai Business Development Service Company located in Xining city, on China’s historic Silk Road.

The new enterprise has two full-time staff, an expatriate American and a Briton, and for 18 months has operated as a representative office in name only before gaining its full business status.

“We still have some things to do, such as registering our foreign investment at the People’s Bank and collecting company stamps and business code books, which are relatively simple,” he said.

“But the complexities of securing a trading licence are daunting and in the previous two months alone we counted 36 separate steps in the procedure.

“It makes New Zealand look good, where you can pretty much register a company on-line and have it up and running the next day.”

The foreign-owned Qinghai business, which by law must be named after its regional location, offers financial advice to Chinese locals as well as offshore investors with an eye on local developments.

“We would be the first to produce a booklet in both Chinese and English languages on business ownership practices and principles,” Mr Weusten said.

“There are big investment opportunities in Qinghai, which has massive economic growth, including seven hydro dam projects on the nearby Yellow River.

“Tourism, agricultural and manufacturing ventures are also crying out for capital, and it matters not whether this is sourced locally or from overseas.”

He said the currently under-valued Chinese currency made foreign investment in property, industry and processing a highly attractive proposition.

“With the connections we are building across the region, we envisage a very busy and productive next few years.”

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