Regulation of foreign investment in Chinese-owned commercial banks

Following a rush to attract capital that has lasted several years, the large state-owned banks and most joint stock commercial banks with nationwide operating licences have successfully attracted capital and listed. Foreign investors have increasingly trained their sights on city commercial banks and rural financial institutions as acquisition targets.

While the regulation of such acquisitions has remained largely unchanged, related policies and access conditions have become stricter.

Investment methods

Since the issue of the Foreign-Funded Banks Administrative Regulations in 2006, many multinational financial institutions have established wholly owned banks with legal personality in the PRC, or are preparing to do so.

Dorothy Xing is a partner at Concord & Partners in Beijing