The People's Bank of China formally approved American Express Co. and Chinese partner LianLian Group's application to start bank card clearing operations in the country, Sina reported Jan. 8.
The move was announced by the central bank on social media the same day. American Express was granted preliminary approval in November 2018.
The central bank's approval allows American Express to set up its own payments network with Chinese joint venture partner LianLian, as well as process and settle payments in yuan locally.
Express (Hangzhou) Technology Services Co., the joint venture between American Express and LianLian Group, will begin operations in the first half in Hangzhou city, the news outlet reported, citing sources. The joint venture was set up in 2017 with a registered capital of 1 billion yuan.
As of Jan. 8, US$1 was equivalent to 6.95 Chinese yuan.