The China Banking Regulatory Commission (CBRC) has finished its
initial feasibility study of allowing foreign banks to list
domestically, Securities Times reported, citing CBRC
chairman Liu Mingkang. The evaluation process will be completed
within the year.
At a forum on Chinese firms' corporate governance amid
globalization, Liu said foreign banks will soon be able to raise
funds on the Chinese stock market if they register as a local
corporate entity. Liu also disclosed relevant regulators have
decided on commercialization of China Development Bank, but
declined to elaborate further.
On corporate governance in banking, Liu attached great
importance to corporate structure and responsibility at Chinese
banks, as well as to their decision making processes, incentive
mechanisms, information disclosure systems, and information
transparency.
According to Liu, Chinese banks have progressed significantly in
governing their business and restructuring over the last two years.
In the next few years, Chinese banks will be urged to learn more
from their foreign peers and establish a set of China-made
standards as well.
(Chinadaily.com.cn January 22, 2008)
