You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

Reply #32: China lifts barrier on local bank fund units [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Nov-12-04 10:35 AM
Response to Original message
32. China lifts barrier on local bank fund units

Beijing has approved the establishment of fund management ventures by local commercial banks - a decision expected to attract interest from foreign money managers seeking partners in China.

It is a breakthrough in the Chinese financial sector because the government has until now prohibited banks from directly owning securities companies.

Liu Mingkang, the chairman of the China Banking Regulatory Commission, said the State Council had cleared local banks to do the fund business in ventures with qualified partners with a record in the area.


Ma Weihua, president of China Merchants Bank, said his bank had been talking to several foreign institutions to form a joint venture fund management firm. Foreign participation, if approved, would be capped at 33 per cent of the equity. "We could have one or two foreign partners but the foreign stake would be limited to 33 per cent."

Allowing commercial banks into the fund management business was an important reform. One reason was that banks were too reliant for revenue on the difference between the loan and deposit rates, but in future should derive more income from fee-based operations. Another reason was to inject more funds into the stock market, which still plays little role in China's capital markets. Banks account for more than 90 per cent of China's financing needs.

Printer Friendly | Permalink |  | Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC