Shang Fulin, Chairman of the China Banking Regulatory Commission (CBRC), recently revealed that China's State Council has given its nod of approval for the establishment of 5 private bank pilot programs. Each pilot program location will be jointly overseen by two companies.
More than 10 enterprises are participating in the pilot program design and operation, including e-commerce conglomerate Alibaba Group, internet and mobile services firm Tencent (0700.HK), and Shanghai-based comprehensive services provider Fosun High Technology Group. The CBRC now plans to conduct a review of participating companies, with qualifying enterprises permitted to submit an application for bank establishment. Further expansion of the program will begin after the pilot programs are fully implemented.