China Banking Regulatory Commission, Implementing Opinions on Encouraging and Guiding the Entry of Private Capital into the Banking Sector

Issued: May 26 2012

Main contents: The investment in the banking sector of private capital on the same conditions as other capital shall be supported. Private enterprises may invest in banking financial institutions in the form of establishment by promotion, subscription for new shares, transfer of equity, merger and acquisition, and re-organisation. Where a private enterprise participates in the risk disposal of an urban commercial bank, its shareholding ratio may be appropriately relaxed to 20% or more. The participation of private enterprises in the establishment by promotion or share increase of rural banks shall be supported. The minimum shareholding ratio of the main sponsor of a rural bank shall be reduced from 20% to 15%.

Investment in trust companies and consumer finance companies by private enterprises shall be supported. Applications for establishment of finance companies of enterprise groups by private enterprise groups that comply with the state industrial policies and that have a core main line of business shall be supported. Investment in lease financing companies by large private enterprises whose main line of business is commensurate with lease financing products and by private leasing companies as the main investor of the lease financing company shall be supported. Investment in auto financing companies by private enterprises that manufacture or sell whole vehicles as the main investor of the auto financing company shall be supported (Article 1).