Banking regulator denies prejudice against private capital

Chief of China’s banking regulator said Sunday that the government does not have “prejudiced regulations” on private investors seeking participation in the banking sector.

“We have a uniform standard, threshold and benchmark for all kinds of capital to enter the banking sector,” said Shang Fulin, chairman of the China Banking Regulatory Commission (CBRC), on the sidelines of 18th National Congress of the Communist Party of China.

“There is no legal barrier for private capital to enter the banking sector,” said Shang, adding that the CBRC issued in May a guideline that encourages and guides private capital investment in the sector.

“The guideline is well-received and in the process of implementation,” the chairman said.

In real practice, Shang said, private capital is doing well in entering the banking sector through various means, including participating the initial public offering of commercial banks and buying their shares.

Private investment accounts for 50 percent of equities in China’s small and medium-sized commercial banks, and as high as 90 percent in small and medium-sized financial institutions in rural areas, said Shang.

Xinhua