Fosun Group has withdrawn from a joint venture with Juneyao Group to set up a private bank in Shanghai due to differences over shareholding and strategy, National Business Daily reported Thursday.
The two have clashed over control of the planned lender since Ling Tao, a former deputy director of the People’s Bank of China in Shanghai, joined Juneyao last month, the report said, citing unnamed sources.
In May, the banking regulator in Shanghai said its first private bank would be set up in the Shanghai pilot free trade zone. Market observers said then that Fosun and Juneyao would receive the green light.
The two companies were among 10 that won approval from the China Banking Regulatory Commission for a trial program aimed at opening the banking sector to private capital.
Fosun and Juneyao joined forces to comply with a requirement that a private bank should have at least two founding shareholders, the report said.
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