Foreign financial institutions with good credit are encouraged to join China's commercial banks by share purchasing and equity participation, said Wang Zhaoxing, assistant chairman of the China Banking Regulatory Commission (CBRC).

Wang said the introduction of foreign strategic partners into Chinese banks has played a positive role in improving their risk management and financial innovation and in enhancing their competitiveness.

There are 25 foreign financial institutions taking shares in 20 large, medium and small sized commercial banks in China. "The opening of China's banking sector is comprehensive and all directional," said Wang. Wang said China will make dynamic and continuous evaluations on the investment of the foreign banks in Chinese banks.

The rules stipulate that an individual foreign financial institution can hold no more than 20 percent of shares in Chinese financial institutions and the ceiling for all foreign financial institutions is 25 percent.

Source:佚名