Home>News Center>China

China may raise cap on foreign investment
Updated: 2005-09-14 17:10

China's banking regulator is considering raising the limits on foreign stakes in state-run commercial banks, a change that potentially could bring billions of dollars in new investments into the industry, an official said Wednesday.

Pedestrians walk past sign boards of foreign banks in the Lujiazui financial area in Shanghai's Pudong new area in this April 23, 2005 photo. China is considering raising the limits on foreign stakes in state-run commercial banks. [newsphoto]
However, Fu Weiyi, spokesman for the China Banking Regulatory Commission, sought to downplay a report on the issue, stressing that the agency was only considering adjusting the limits. Those cap an equity stake in a Chinese bank by any one foreign institution at 20 percent, with the total foreign holdings limited to a maximum of 25 percent.

"The CBRC has not yet issued any official announcements and we don't have any concrete plan for that. This is just an idea," Fu said.

Foreign banks, including Royal Bank of Scotland Group PLC and Goldman Sachs Group. Inc., have been staking out strategic alliances in China, hoping to be well-positioned for the eventual full opening of the banking industry to foreign competition in late 2006. Chinese banks are being encouraged to seek such partnerships to help build up their capital and improve management.

The limits on foreign investments apparently are aimed at preserving state control of major lenders, which are still all state-owned. However, some foreign investors have chafed at those limits, saying they prevent investors from exerting enough influence to improve bank management.
Page: 12

Blast kills 11 in Yunan village
Chinese, US presidents meet
US Navy destroyer visits Qingdao
  Today's Top News     Top China News

President Hu: China to work with US on trade gap



China may raise cap on foreign investment



UN refuses Taiwan's representation



Wave of violence kills 97 in Baghdad



Chinese group buys Ecuador oil assets



North Korea digs in as nuclear talks resume


  Six-Party Talks to resume fully today
  UN refuses Taiwan's representation
  US warship arrives in China for visit
  Chinese cars no immediate threat to Europe
  President Hu: China to work with US on trade gap
  Drive launched to fight drug problem
  Go to Another Section  
  Story Tools  
  Related Stories  
Standard Chartered to create China bank
14 deals mulled to link Chinese, foreign banks
China's two biggest banks sign $6B in deals
BOC said to hire Goldman for IPO
ANZ eyes stake in new lender
Citibank seeks 19.9% of Shanghai lender
Temasek close to buying BOC stake - FT
  News Talk  
  It is time to prepare for Beijing - 2008