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China unveils banking system changes

Private capital organisations in China will be allowed to abide by the same rules as other firms when entering the country's banking industry, it has emerged.

Policymakers in Beijing have opted to alter the legal guidelines in terms of investing in this sector in order to stabilise the Asian superpower's wavering economy and prevent its financial slowdown from worsening in the near future.

Under the terms of the changes announced by the China Banking Regulatory Commission (CBRC), private equity companies can now buy into banks through methods such as mergers and acquisitions, new share subscriptions and stock placements.

It is hoped this will act as a catalyst for economic expansion through encouraging extra lending to firms that need it.

In a statement, the CBRC, noted this alteration will improve transparency in the banking industry.

"The banking regulatory branches at different levels cannot set up separate restrictions or additional conditions for private capital to enter banking sector," it added.

By Gary Cooper