[9] People's Republic of China (PRC) established by the Chinese Communist Party in 1949 was in dire need for foreign currency especially after the Korean War (1950-1953) and the Sino-Soviet split in the early 1960s for international trade with countries of non-Soviet bloc. The British sterling obtained through Hong Kong was able to finance 28% and 46% of PRC's total import from 1963 to 1967 and from 1970 to 1971 respectively.[10] Of the British sterling obtained by PRC through Hong Kong during 1953 and 1971, about 40-50% was supplied by The Hongkong and Shanghai Banking Corporation (HSBC), the de facto 'central bank' in Hong Kong, which accounted for 10% of annual foreign currency needed by PRC in the period.[11]