China’s banking watchdog has approved the launch of two private banks, in Beijing and East China’s Jiangsu province, to better serve the real economy and help finance small enterprises.
In a statement to the Shenzhen Stock Exchange Wednesday night, Suning Commerce Group, a major Chinese home appliance retailer, said it had received the green light from the China Banking Regulatory Commission to set up its bank in Nanjing, capital of Jiangsu. Suning has a 30 percent stake in the bank.
Meanwhile, shareholders of Zhongguancun Bank said the bank had received regulatory approval.
Zhongguancun Bank has a registered capital of 4 billion yuan ($576 million) and will be established by 11 listed companies in six months. Yonyou Network Technology Co Ltd is the largest shareholder, with a 29.8 percent stake.
Both banks will provide financial services, mainly to individual clients and micro, small and medium-sized enterprises.
The commission approved the setting up of five private banks on a trial basis in March 2014, in a bid to further open up the banking sector to domestic and foreign capital.
Earlier this year, the banking regulator approved Chongqing-based Fumin Bank, Sichuan-based Xiwang Bank and Fujian-based Huatong Bank.
ARTICLE SOURCE: China Daily