BIZCHINA / Top Biz News |
Nation welcomes strategic foreign investment in banking(Xinhua)Updated: 2006-11-12 09:03 China will continue to support foreign banks that become strategic investors in Chinese commercial banks in the next five years, said a document on foreign investment utilization. Chinese banks must hold the majority of shares of such ventures, according to the country's 11th five-year program (2006-2010) on foreign investment utilization. Over the past few years, strategic foreign investors have joined three of the Big Four" State-owned commercial banks in China - the Industrial and Commercial Bank of China, Bank of China and China Construction Bank. Under China's World Trade Organization commitment, the country will fully open its banking sector to foreign banks by the end of this year. According to the program, China also encourages strategic foreign investment in State-owned insurance companies which also must be primarily owned by the Chinese partner. Foreign insurance companies specializing in pension insurance, health insurance, liability insurance and agriculture insurance are especially welcomed, said the program. According to the document, China utilized US$383 billion of overseas investment between 2001 and 2005. This included US$286 billion in direct overseas investment, US$38 billion in overseas stock investment and US$46 billion in foreign loans. (For more biz stories, please visit Industry Updates)
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