Bank lockup period extended to five years

China's banking regulator wants foreign investors to stay locked in to their stakes in domestic banks for five years, although it seems not to have issued any formal regulations to that effect. The policy change has been seen by some as a warning to foreign banks which have not yet sold up.

Speaking at a meeting on March 31, China Banking Regulatory Commission (CBRC) chair Liu Mingkang said the move would help stabilise China's banking system. His remarks were widely reported in the media the next day. Despite the policy announcement, no formal regulations appear to have been issued.

“From what has been made public so far, there seems to be no published regulation – it is a statement by a senior CBRC official,” said Victor Ho, a Shanghai partner of Allen & Overy.