Date
18 October 2017

Foreign ownership cap in Chinese banks stays, CBRC says

China will maintain a 25 percent cap on total foreign ownership in any single Chinese commercial bank, the country’s banking regulator said on its website Thursday.

Investors that own a stake in Chinese banks should hold the shares as a long-term investment, help improve the lenders’ corporate governance and business and avoid direct competition, the China Banking Regulatory Commission (CBRC) said. 

Any changes to the policy on such investment will be based on industry risks and regulatory needs, it said.

Meanwhile, the CBRC scrapped the minimum requirement for setting setting up a sub-branch. The move is aimed at allowing domestic commercial banks with strong risk controls to establish more branches in rural areas and boost services to the agricultural sector. 

Chinese banks seeking overseas acquisitions should have at least 100 billion yuan (US$16.42 billion) in assets as of the end of the preceding year, the CBRC said. 

– Contact HKEJ at digest@ejinsight.com

JP/RA 

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