China gives go-ahead for three private banks

BEIJING - The Chinese Government has approved establishment of three private banks in an effort to diversify the financial services sector. Shang Fulin, Chairman of the China Banking Regulatory Commission, announced the three lenders are Shenzhen Gianhai WeBank, Wenzhou Civil Commerical Bank and Tianjin Jincheng Bank. Tencent will hold a 30% stake in Shenzhen Qianhai WeBank.

According to the announcement, the three private banks will differentiate themselves on market positioning and development strategy by taking into consideration the advantages of shareholders and characteristics of their regions. The Shenzhen bank will focus on serving individual consumers as well as micro and small enterprises. The Wenzhou lender will target small companies, individually-owned businesses and community residents, while the Tianjin bank will prioritise local corporate banking.  www.webershandwick.cn (ATI).