16 September 2019

Natural persons can invest in rural commercial banks, paper says

China will allow natural persons to invest in rural commercial banks, the China Securities Journal reported Thursday, citing draft rules released by the China Banking Regulatory Commission. The minimum registered capital for rural commercial banks will be set at 50 million yuan (US$8.14 million) and shareholders who are natural persons are allowed to take up to a 2 percent stake. Shareholders who are bank employees are limited to a 20 percent stake, the report said. Domestic non-financial institutions and foreign banks will be allowed to act as initiators of commercial banks, it said.

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