Foreign banks to be allowed bigger stake in Chinese financial institutions
October 24, 2017 Category China News Round-up, Weekly
China will accelerate the opening up of its banking sector to foreign investors and consider steps to increase the upper limit of shareholding in Chinese financial institutions by foreign banks, Guo Shuqing, Chairman of the China Banking Regulatory Commission (CBRC) said. Guo is expected to be appointed Governor of the People’s Bank of China (PBOC), replacing Zhou Xiaochuan, who has reached the retirement age.
The market share of foreign banks in China by assets has declined during the last five years, which is not beneficial for promoting competition and structural optimization in the banking sector, Guo said. By the end of 2016, the total assets of foreign banks in China had reached CNY2.93 trillion, accounting for 1.29% of the total assets of financial institutions in the Chinese banking sector, falling from 1.82% as of end-2012, according to the CBRC. “We will give more space to foreign banks in the form of their establishment, the percentage of their shareholding and their scope of business,” Guo said.
Since December 2003, the CBRC has allowed a single offshore financial institution to own up to 20% of a Chinese financial institution, and a maximum combined stake of several foreign banks of 25%. As the Chinese economy adjusts to a “new normal”, international financial institutions are facing a series of external challenges – from economic restructuring to low interest margins and digitization.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world